Case Brief
RBI, by order dated June 19, 2024, cancelled the licence of The City Co-operative Bank Ltd., Mumbai, Maharashtra. As a result, the bank ceased banking business from the close of business on June 19, 2024, and was also prohibited from conducting the business of banking, including accepting and repaying deposits, with immediate effect. RBI said the bank lacked adequate capital and earning prospects, did not meet the relevant requirements under Sections 11(1) and 22(3) read with Section 56 of the Banking Regulation Act, 1949, and had failed other licensing conditions. RBI also recorded that continuation of the bank would prejudice depositors and public interest. The release further notes that the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has been requested to order winding up and appoint a liquidator; DICGC insurance protections apply to eligible depositors, subject to law.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location