Case Brief
RBI cancelled the licence of United Commercial Co-operative Bank Ltd., Kanpur (Uttar Pradesh), with effect from the close of business on January 24, 2015. The cancellation was based on the bank’s deteriorating financial condition, inability to pay depositors in full, violation of Sections 11 and 22(3) of the BR Act, failure to meet minimum capital and reserves norms, and the absence of any viable revival or merger proposal. RBI stated that the bank’s continued operations were detrimental to depositor and public interest. Following cancellation, the Registrar of Co-operative Societies, Uttar Pradesh, was asked to initiate winding-up proceedings and appoint a liquidator, and the bank was prohibited from conducting banking business with immediate effect.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location