RBI cancels the license of The Malkapur Urban Co-operative Bank Limited, Buldhana, Maharashtra

Case Brief

RBI, by order dated July 04, 2023, cancelled the licence of The Malkapur Urban Co-operative Bank Limited, Buldhana, Maharashtra. The regulator found that the bank lacked adequate capital and earning prospects and was non-compliant with multiple licensing provisions under Sections 11(1) and 22(3) read with Section 56 of the Banking Regulation Act, 1949. RBI further observed that the bank’s continuance was prejudicial to depositors, that it would be unable to pay its present depositors in full, and that public interest would be adversely affected if it were allowed to continue. As a consequence, the bank was prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect from the close of business on July 05, 2023. RBI also requested the Registrar of Cooperative Societies, Maharashtra to initiate winding up and appoint a liquidator.