Case Brief
The Reserve Bank of India, by order dated July 08, 2021, cancelled the licence of Dr. Shivajirao Patil Nilangekar Urban Co-operative Bank Limited, Nilanga, Dist. Latur, Maharashtra. As a result, the bank ceased to carry on banking business from the close of business on July 14, 2021, and was immediately prohibited from conducting the business of banking, including acceptance and repayment of deposits. RBI cited inadequate capital and earning prospects, non-compliance with section 11(1) and section 22(3)(d) read with section 56 of the Banking Regulation Act, 1949, and failure to comply with section 22(3)(a) to 22(3)(e) read with section 56. RBI further said continuation of the bank would be prejudicial to depositors, the bank would be unable to pay its present depositors in full, and public interest would be adversely affected. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra was requested to issue a winding-up order and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location