RBI cancels the license of Brahmawart Commercial Co-operative Bank Ltd., Kanpur, Uttar Pradesh

Case Brief

The Reserve Bank of India cancelled the licence of Brahmawart Commercial Co-operative Bank Ltd., Kanpur, Uttar Pradesh, by order dated June 26, 2018, effective from the close of business on July 03, 2018. RBI said the bank did not have adequate capital and earning prospects, was not able to pay present and future depositors in full, and its affairs were being conducted in a manner detrimental to depositor interests. It further noted the bank had not made serious efforts to improve its financial position despite repeated opportunities, and that there was no scope for revival. Following the cancellation, the bank is prohibited from conducting banking business, including acceptance and repayment of deposits. The Registrar of Co-operative Societies, Uttar Pradesh has been requested to initiate winding up and appoint a liquidator, and depositor repayment will proceed under the DICGC framework up to the insured limit.