Case Brief
The Reserve Bank of India cancelled the licence of Karnala Nagari Sahakari Bank Ltd., Panvel (District - Raigad), Maharashtra, by order dated August 09, 2021. RBI said the bank lacked adequate capital and earning prospects, did not comply with the relevant licensing provisions of the Banking Regulation Act, 1949, and had failed several requirements under section 22(3) read with section 56. RBI also noted that the bank's continuance would be prejudicial to depositors, that it would be unable to pay depositors in full, and that public interest would be adversely affected. Following the cancellation, the bank is prohibited from conducting banking business with immediate effect, and the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has been requested to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location