Case Brief
The Reserve Bank of India cancelled the licence of Bhilwara Mahila Urban Co-operative Bank Ltd., Bhilwara, Rajasthan by order dated August 23, 2018, effective from the close of business on August 31, 2018. RBI said the bank lacked adequate capital and earning prospects, could not pay present and future depositors in full as claims accrued, and was conducting its affairs in a manner detrimental to the interests of present and future depositors. These findings indicated non-compliance with sections 11(1), 22(3)(a), 22(3)(b), 22(3)(d) and 22(3)(e) read with section 56 of the Banking Regulation Act, 1949. Consequent to the cancellation, the bank was prohibited from carrying on the business of banking, including accepting and repaying deposits. RBI also asked the Registrar of Co-operative Societies, Rajasthan to issue winding-up orders and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location