Reserve Bank of India cancels the license of People’s Co-operative Bank Limited, Kanpur, Uttar Pradesh

Case Brief

RBI cancelled the licence of People’s Co-operative Bank Limited, Kanpur, Uttar Pradesh, by order dated March 17, 2022. The cancellation was based on inadequate capital and earning prospects, non-compliance with Sections 11(1) and 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949, and failure to comply with Sections 22(3)(a) to (e) read with Section 56. RBI further stated that the bank’s continuance was prejudicial to depositors, that it would be unable to pay depositors in full, and that public interest would be adversely affected by continued operations. Following the cancellation, the bank was prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect, and the Registrar of Cooperative Societies was requested to initiate winding up and appoint a liquidator.