RBI cancels the license of Shushruti Souharda Sahakara Bank Niyamita, Bengaluru (Revised)

Case Brief

RBI cancelled the licence of Shushruti Souharda Sahakara Bank Niyamita, Bengaluru, effective from the close of business on July 05, 2023. RBI cited inadequate capital and earning prospects, non-compliance with Sections 11(1) and 22(3) read with Section 56 of the Banking Regulation Act, 1949, and said the bank's continuance would be prejudicial to depositors and public interest. Following cancellation, the bank is prohibited from conducting banking business, including accepting and repaying deposits, and the Registrar of Cooperative Societies, Bengaluru has been requested to initiate winding up and appoint a liquidator.