Case Brief
RBI, by order dated February 5, 2024, cancelled the licence of Jai Prakash Narayan Nagari Sahakari Bank Ltd., Basmathnagar, Maharashtra. The bank ceased to carry on banking business from the close of business on February 6, 2024, and the Registrar of Cooperative Societies, Maharashtra, was requested to issue a winding-up order and appoint a liquidator. RBI cited inadequate capital and earning prospects, non-compliance with Sections 11(1) and 22(3) of the Banking Regulation Act, 1949 read with Section 56, and concerns that the bank’s continuance would be prejudicial to depositors and against public interest. RBI also stated the bank would be unable to pay its present depositors in full. On liquidation, eligible depositors may claim insurance up to ₹5 lakh per depositor from DICGC, subject to the applicable law.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location