RBI cancels the licence of National Urban Co-operative Bank Limited, Bahraich (U.P)

Case Brief

RBI cancelled the licence of National Urban Co-operative Bank Limited, Bahraich (U.P) by order dated September 21, 2023. The cancellation was based on inadequate capital and earning prospects, non-compliance with Sections 11(1) and 22(3)(a) to 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949, and RBI’s view that the bank’s continuance would be prejudicial to depositors and public interest. Consequent to the cancellation, the bank is prohibited from conducting the business of banking, including acceptance and repayment of deposits, with immediate effect from the close of business on September 22, 2023. RBI also requested the Commissioner and Registrar of Cooperative, Uttar Pradesh to issue winding-up orders and appoint a liquidator.