Case Brief
RBI, by order dated June 14, 2024, cancelled the licence of Purvanchal Co-operative Bank Ltd., Ghazipur, Uttar Pradesh. The regulator cited inadequate capital and earning prospects, non-compliance with statutory licensing requirements under Sections 11(1) and 22(3) read with Section 56 of the Banking Regulation Act, 1949, and stated that the bank’s continuation would be prejudicial to depositors and public interest. Following the cancellation, the bank is prohibited from carrying on banking business, including acceptance and repayment of deposits, with effect from the close of business on June 15, 2024. RBI also requested the Uttar Pradesh cooperative authorities to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Ghazipur, Uttar Pradesh