Case Brief
The Reserve Bank of India cancelled the licence of Mantha Urban Cooperative Bank Ltd., Mantha, District Jalna, Maharashtra, by order dated February 15, 2022. RBI said the bank lacked adequate capital and earning prospects and had not met the licensing requirements under sections 11(1) and 22(3)(a)-(e) read with section 56 of the Banking Regulation Act, 1949. RBI also concluded that the bank’s continuance would be prejudicial to depositors and public interest. As a result of the cancellation, the bank is prohibited from conducting banking business, including acceptance and repayment of deposits, with effect from the close of business on February 16, 2022. RBI also requested the Maharashtra cooperative registrar to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location