RBI Canceled License: The Reserve Bank of India (RBI) has canceled the license of another bank. RBI canceled the license of Mahalaxmi Co-operative Bank Dharwad, Karnataka’s Mahalaxmi Sahakari Bank. RBI directs co-operative bank to operate only as non-banking entity
RBI Canceled License: The Reserve Bank of India (RBI) has canceled the license of another bank. RBI canceled the license of Mahalaxmi Co-operative Bank Dharwad, Karnataka’s Mahalaxmi Sahakari Bank. RBI has directed the co-operative bank to work only as a non-banking institution. The banking regulator said that the RBI has canceled the banking license granted to Mahalaxmi Cooperative Bank Dharwad on March 23, 1994.
RBI canceled the license
RBI’s order to cancel the license has come into effect from June 27, 2023. The RBI said Mahalakshmi Co-operative Limited, Dharwad, Karnataka has been ordered under Section 5(B) of the Banking Regulation Act to cease banking operations, except accepting cash deposits from non-members, with immediate effect.
RBI’s big action on cooperative banks
Earlier in April 2023, the RBI had canceled the banking license of Adoor Co-operative Urban Bank and allowed it to operate only as an NBFC. The distressed co-operative society is facing RBI action. RBI has canceled the licenses of nine banks in the financial year 2023.
Recently fined on 7 co-operative banks
On Monday, RBI also imposed heavy penalty on 7 cooperative banks for not following the rules. The banks that have been fined include Textile Traders Co-operative Bank Ltd, Ujjain Nagrik Hakri Bank, Panihati Co-operative Bank, The Berhampur Co-operative Urban Bank, Solapur Siddheshwar Sahakari Bank, Uttar Pradesh Co-operative Bank Ltd and Uttarpara. operative banks.
