Case Brief
RBI, by order dated September 21, 2023, cancelled the licence of Sri Mallikarjuna Pattana Sahakari Bank Niyamita, Maski, Karnataka. As a result, the bank ceased to carry on banking business with effect from the close of business on September 22, 2023. RBI requested the Registrar of Cooperative Societies, Bengaluru to issue an order for winding up the bank and appoint a liquidator. The cancellation was based on the bank’s inadequate capital and earning prospects, non-compliance with Sections 11(1) and 22(3)(a) to (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.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Maski, Karnataka