Case Brief
RBI, by order dated April 21, 2025, cancelled the licence of Ajantha Urban Co-operative Bank Maryadit, Aurangabad. As a result, the bank ceased to carry on banking business with effect from the close of business on April 22, 2025, and the Registrar of Cooperative Societies, Maharashtra was requested to issue a winding-up order and appoint a liquidator. RBI cited inadequate capital and earning prospects, non-compliance with Sections 11(1) and 22(3)(a)-(e) read with Section 56 of the Banking Regulation Act, 1949, and concerns that the bank’s continuance would prejudice depositors and public interest. The release also notes that the bank is prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location