Case Brief
The Reserve Bank of India cancelled the licence of Uravakonda Co-operative Town Bank Ltd., Uravakonda (Anantapur District), Andhra Pradesh by order dated July 19, 2024. As a result, the bank ceased to carry on banking business with effect from the close of business on July 20, 2024, and the Commissioner for Cooperation and Registrar of Cooperative Societies, Andhra Pradesh was requested to initiate winding up and appoint a liquidator. RBI said the bank lacked adequate capital and earning prospects, failed to meet licensing requirements under Sections 11(1) and 22(3)(a)-(e) read with Section 56 of the Banking Regulation Act, 1949, and that its continuance would be prejudicial to depositors and public interest.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Uravakonda, Andhra Pradesh