Case Brief
RBI cancelled the licence of Garha Co-operative Bank Ltd., Guna, Madhya Pradesh through an order dated February 16, 2023. The bank was found to lack adequate capital and earning prospects, to be non-compliant with Sections 11(1) and 22(3)(a) to (e) read with Section 56 of the Banking Regulation Act, 1949, and to be in a financial position that could not assure full repayment to depositors. RBI said the bank's continuance would be prejudicial to depositors and against public interest. Following the cancellation, the bank is prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect, and the Registrar of Cooperative Societies has been requested to wind up the bank and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location