RBI cancels license of Kanpur-based People's Co-operative Bank

Mumbai (Maharashtra) : The Reserve Bank of India (RBI) on Monday said it has cancelled the license of Kanpur-based People's Co-operative Bank Limited as the bank does not have adequate capital and earning prospects.

"Today, the Reserve Bank of India (RBI), vide order dated March 17, 2022, has cancelled the license of People's Co-operative Bank Limited, Kanpur, Uttar Pradesh.

Consequently, the bank ceases to carry on banking business, with effect from the close of business on March 21, 2022. The Commissioner for Cooperation and Registrar of Cooperative Societies, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank," RBI said in a statement.

The RBI said the "bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949."

Consequent to the cancellation of its license, People's Co-operative Bank Limited, Kanpur, Uttar Pradesh is prohibited from conducting the business of 'banking' which includes acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect, the RBI added. (ANI)