Case Brief
The Reserve Bank of India cancelled the licence of Navodaya Urban Co-operative Bank Ltd., Nagpur, Maharashtra by order dated October 4, 2018, effective from the close of business on October 8, 2018. RBI cited inadequate capital and earning prospects, non-compliance with sections 11(1) and 22(3)(a)-(e) read with section 56 of the Banking Regulation Act, 1949, and concerns that the bank’s continuance would be prejudicial to depositors and public interest. RBI also requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Nagpur, Maharashtra