Case Brief
RBI, by order dated July 11, 2023, cancelled the licence of Sri Sharada Mahila Co-operative Bank Ltd., Tumkur, Karnataka. As a result, the bank ceased to carry on banking business from the close of business on July 11, 2023, and the Registrar of Cooperative Societies, Karnataka was requested to issue a winding-up order and appoint a liquidator. RBI cited inadequate capital and earning prospects, non-compliance with sections 11(1) and 22(3)(d) read with section 56 of the Banking Regulation Act, 1949, and failure to meet sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e) read with section 56. RBI also said the bank’s continuance would be prejudicial to depositors and public interest.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Tumkur, Karnataka