Case Brief
RBI cancelled the licence of The Faiz Mercantile Cooperative Bank Ltd., Nashik, Maharashtra, by order dated December 29, 2023. The cancellation took effect from the close of business on December 30, 2023. RBI said the bank lacked adequate capital and earning prospects, failed to meet several licensing requirements under Sections 11(1) and 22(3)(a) to (e) read with Section 56 of the Banking Regulation Act, 1949, and that its continuance would be prejudicial to depositors and public interest. RBI also requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra to issue winding-up orders and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Nashik, Maharashtra