Case Brief
RBI cancelled the banking licence of The Madgaum Urban Co-operative Bank Limited, Margao, Goa, effective from the close of business on July 29, 2021. The bank was found to lack adequate capital and earning prospects and to be non-compliant with sections 11(1) and 22(3)(a)-(e) read with section 56 of the Banking Regulation Act, 1949. RBI also stated that the bank's continuance was prejudicial to depositor interests and public interest, and that it would be unable to pay its present depositors in full. The Office of the Registrar of Cooperative Societies, Goa was requested to initiate winding-up proceedings and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Margao, Goa