Case Brief
RBI, by order dated November 09, 2022, cancelled the licence of Babaji Date Mahila Sahakari Bank Limited, Yavatmal, Maharashtra. As a result, the bank ceases to carry on banking business with effect from the close of business on November 11, 2022, and it is prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect. RBI said the bank lacked adequate capital and earning prospects and failed to comply with the relevant licensing provisions of the Banking Regulation Act, 1949. RBI also requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra to issue an order for winding up and appoint a liquidator. The release adds that depositors may be entitled to insurance cover up to ₹5 lakh subject to DICGC provisions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location