Case Brief
RBI cancelled the licence of Banaras Merchantile Co-operative Bank Limited, Varanasi by order dated July 03, 2024. The regulator said the bank lacked adequate capital and earning prospects, failed to comply with multiple provisions of the Banking Regulation Act, 1949, and that its continuance was prejudicial to depositors and public interest. As a result, the bank is prohibited from conducting banking business, including accepting and repaying deposits, with effect from the close of business on July 04, 2024. RBI also requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Uttar Pradesh to order winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Varanasi, Uttar Pradesh