RBI cancels the licence granted to The Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd., Cuddalore, Tamil Nadu and allows it to function as non-banking institution

Case Brief

RBI notified The Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd., Cuddalore – 607001, Tamil Nadu as a non-banking institution under Section 36A(2) read with Section 56 of the Banking Regulation Act, 1949. As a result, RBI cancelled the licence dated March 21, 2000, granted under Section 22 read with Section 56 to carry on banking business in India, with effect from the close of business on February 6, 2025. The bank must stop conducting the business of banking, including acceptance of deposits from non-members, with immediate effect, and must repay unpaid and unclaimed deposits of non-members whenever demanded.