Case Brief
RBI cancelled the licence of Nagar Urban Co-operative Bank Ltd., Ahmednagar, Maharashtra, by order dated October 4, 2023. The cancellation was based on inadequate capital and earning prospects, non-compliance with Section 11(1) and Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949, and additional failures to meet Section 22(3)(a) through 22(3)(e) requirements. RBI further stated that the bank’s continuance would be prejudicial to depositors, it would be unable to pay present depositors in full, and public interest would be adversely affected. As a consequence, the bank is prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect, and the registrar was requested to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location