Case Brief
RBI cancelled the licence of The Laxmi Co-operative Bank Limited, Solapur, Maharashtra by order dated September 14, 2022. The regulator said the bank lacked adequate capital and earning prospects and did not satisfy the licensing requirements under Sections 11(1) and 22(3) read with Section 56 of the Banking Regulation Act, 1949. RBI also cited failure to comply with multiple clauses of Section 22(3), and concluded that the bank’s continuance would be prejudicial to depositors and public interest. As a result, the bank ceased to carry on banking business with effect from the close of business on September 22, 2022, and the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra was requested to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location