The Reserve Bank of India (RBI) on Tuesday canceled the license of Karnataka-based Mahalaxmi Cooperative Bank.
The Reserve Bank of India (RBI) on Tuesday canceled the license of Karnataka-based Mahalaxmi Co-operative Bank, Dharwad (Mahalaxmi Cooperative Bank, Dharwad). RBI has directed the co-operative bank to function only as a non-banking institution. The banking regulator said, RBI has canceled the banking license dated March 23, 1994 given to Mahalaxmi Cooperative Bank Dharwad.
The cancellation of the license will be effective from the close of business on June 27, 2023, said a release. Mahalaxmi Co-operative Ltd., Dharwad, Karnataka has been ordered under Section 5(b) of the Banking Regulation Act to cease conducting banking business, including accepting deposits from non-members, with immediate effect, RBI said. Is.
RBI’s big action on co-operative banks
Earlier in April 2023, RBI canceled the banking license of Adoor Co-operative Urban Bank and allowed it to operate only as an NBFC. The distressed cooperative is facing action from the RBI, which canceled the licenses of nine banks in FY2023.
7 co-operative banks fined
On Monday, the RBI imposed heavy fines on 7 cooperative banks for not following the rules. The banks that have been fined include Textile Traders Co-operative Bank Limited, Ujjain Nagrik Hakari Bank Maryadit, Panihati Co-operative Bank, The Berhampur Co-operative Urban Bank, Solapur Siddheshwar Sahakari Bank, Uttar Pradesh Co-operative Bank Limited and Uttarpara Co-operative banks are included.
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