Case Brief
The Reserve Bank of India cancelled the licence of The Karwar Urban Co-operative Bank Ltd., Karwar by order dated July 22, 2025. As a result, the bank ceased to carry on banking business from the close of business on July 23, 2025, and RBI requested the Registrar of Cooperative Societies, Karnataka to wind up the bank and appoint a liquidator. RBI said the bank lacked adequate capital and earning prospects, had failed to comply with multiple provisions of the Banking Regulation Act, 1949, and that its continuance would be prejudicial to depositors and public interest. The release also notes that, following cancellation, 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