Case Brief
RBI cancelled the licence of Shimsha Sahakara Bank Niyamitha, Maddur, Mandya District, Karnataka, by order dated July 05, 2024. The bank was found to lack adequate capital and earning prospects and to be non-compliant with multiple provisions of the Banking Regulation Act, 1949, including Sections 11(1) and 22(3)(a) to (e) read with Section 56. RBI also stated that the bank’s continuance would be prejudicial to depositors and public interest. As a consequence, the bank ceased to carry on banking business with effect from the close of business on July 05, 2024, and the Registrar of Cooperative Societies, Karnataka was requested to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Maddur, Karnataka