Case Brief
RBI, by order dated July 23, 2024, cancelled the licence of The Mahabhairab Cooperative Urban Bank Ltd., Tezpur, Assam. As a result, the bank ceases to carry on banking business from the close of business on July 24, 2024 and is prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect. RBI cited inadequate capital and earning prospects, non-compliance with Sections 11(1) and 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949, and failure to comply with Sections 22(3)(a) to (e) read with Section 56. RBI also said the bank’s continuance would be prejudicial to depositors and public interest. The Registrar of Cooperative Societies, Assam has been requested to initiate winding up and appoint a liquidator. DICGC deposit insurance applies up to ₹5 lakh per depositor, subject to law.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location