Case Brief
RBI cancelled the licence of The Bhopal Nagrik Sahakari Bank Ltd., Bhopal, Madhya Pradesh, by order dated January 17, 2018, with effect from the close of business on January 22, 2018. The cancellation was based on the bank’s inadequate capital structure and earning prospects, inability to pay present and future depositors in full, detrimental conduct of affairs, and failure to take positive steps for capital augmentation, financial restructuring, or present a viable revival plan. RBI concluded that the bank did not satisfy the relevant provisions of the Banking Regulation Act, 1949 and that continued operation would harm public interest. The Registrar of Co-operative Societies, Madhya Pradesh, was requested to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location