Reserve Bank cancels the banking licence granted to The Adoor Co-operative Urban Bank Ltd, Adoor, Kerala and allows it to function as non-banking institution

Case Brief

The Reserve Bank of India cancelled the banking licence of The Adoor Co-operative Urban Bank Ltd, Adoor, Kerala, originally granted on January 03, 1987, under Section 22 read with Section 56 of the Banking Regulation Act, 1949. RBI also notified the entity as a non-banking institution under Section 36A(2) read with Section 56, effective from the close of business on April 24, 2023. As a result, the bank must stop conducting banking business under Section 5(b), including acceptance of deposits from non-members, and must repay unpaid and unclaimed deposits of non-members whenever demanded.