Case Brief
RBI, by order dated February 27, 2024, cancelled the licence of Sumerpur Mercantile Urban Cooperative Bank Limited, Sumerpur, Pali, Rajasthan. The regulator said the bank did not have adequate capital and earning prospects, had failed to comply with multiple 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 further noted that the bank would be unable to pay its present depositors in full. As a consequence, the bank was prohibited from conducting the business of banking, including acceptance and repayment of deposits, with immediate effect from the close of business on February 28, 2024. RBI also requested the Registrar of Cooperative Societies, Rajasthan to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location