Case Brief
The Reserve Bank of India cancelled the licence of The Kapol Co-operative Bank Limited, Mumbai, Maharashtra by order dated September 25, 2023. RBI said the bank lacked adequate capital and earning prospects, failed to satisfy the requirements of Sections 11(1) and 22(3) read with Section 56 of the Banking Regulation Act, 1949, and that its continuation would be prejudicial to depositors and public interest. Following the cancellation, the bank is prohibited from conducting banking business, including accepting and repaying deposits, with immediate effect, and liquidation/winding-up action was requested.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Mumbai, Maharashtra