Case Brief
RBI has cancelled the banking licence of Mahalaxmi Cooperative Bank Ltd., Dharwad, Karnataka, which had been granted on March 23, 1994, and has notified it as a non-banking institution under Section 36A(2) read with Section 56 of the Banking Regulation Act, 1949. The cancellation takes effect from the close of business on June 27, 2023. Following this, the entity must stop conducting banking business as defined under Section 5(b) of the Act, including acceptance of deposits from non-members. RBI also stated that the bank must repay unpaid and unclaimed deposits of non-members whenever demanded.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Dharwad, Karnataka