Case Brief
The Reserve Bank of India cancelled the licence of Musiri Urban Co-operative Bank Ltd., Musiri through an order dated December 29, 2023. The RBI said the bank lacked adequate capital and earning prospects and had not complied with multiple licensing provisions under the Banking Regulation Act, 1949. It also recorded that the bank’s continuance would be prejudicial to depositors, that the bank would be unable to pay depositors in full, and that public interest would be adversely affected if it were allowed to continue operating. As a consequence, the bank was prohibited from conducting the business of banking, including acceptance and repayment of deposits, with immediate effect, and the Registrar of Cooperative Societies, Tamil Nadu was requested to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location