Case Brief
The Reserve Bank of India cancelled the licence of Shri Chhatrapati Urban Co-operative Bank Ltd., Pimple Nilakh, Pune, Maharashtra, effective from the close of business on February 07, 2017. RBI said the bank had failed to comply with Sections 11(1) and 18 of the Banking Regulation Act, 1949 (AACS), and that its operations were being carried out in a manner detrimental to the interest of present and future depositors and the public, in violation of Sections 22(3)(a) to 22(3)(e) and Section 24 of the Act. RBI also noted that the bank was not in a position to pay its depositors in full when claims accrued, that there was no scope for revival, and that allowing it to continue business would adversely affect public interest. Consequent to the cancellation, the bank was prohibited from conducting the business of banking, and the Registrar of Co-operative Societies, Maharashtra, was requested to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location