Case Brief
RBI, by order dated December 04, 2023, cancelled the licence of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Ichalkaranji, Kolhapur. The bank was found to lack adequate capital and earning prospects and to be non-compliant with multiple provisions of the Banking Regulation Act, 1949, including Section 11(1) and Section 22(3)(a) to (e) read with Section 56. RBI said the bank’s continuance would be prejudicial to depositors, that it would be unable to pay present depositors in full, and that public interest would be adversely affected. As a result, the bank is prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect, and the Commissioner for Cooperation and Registrar Cooperative Societies, Maharashtra has been requested to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location