Case Brief
The Reserve Bank of India cancelled the licence of United Co-operative Bank Ltd., Bagnan, West Bengal by order dated May 10, 2021. RBI said the bank did not have adequate capital and earning prospects, failed to satisfy multiple requirements under the Banking Regulation Act, 1949, and its continuance would be prejudicial to depositors and public interest. With the cancellation, the bank ceases to carry on banking business with effect from the close of business on May 13, 2021, and the Registrar of Cooperative Societies, West Bengal was requested to initiate winding up and appoint a liquidator. RBI also stated that deposit insurance settlement under the DICGC Act would be set in motion.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Bagnan, West Bengal