RBI cancels the Licence of the Subhadra Local Area Bank Ltd., Kolhapur, Maharashtra - আরবিআই - Reserve Bank of India
RBI cancels the Licence of the Subhadra Local Area Bank Ltd., Kolhapur, Maharashtra
The Reserve Bank of India (RBI) has, vide order dated December 24, 2020 cancelled the banking licence issued to Subhadra Local Area Bank Ltd., Kolhapur, Maharashtra under Section 22 (4) of the Banking Regulation Act, 1949 to carry on banking business in India. The order is made effective from close of business on December 24, 2020. The Reserve Bank cancelled the licence of the Subhadra Local Area Bank Ltd as:
The bank had breached the minimum net worth requirement for two quarters in the financial year 2019-20. Consequent to the cancellation of the licence, Subhadra Local Area Bank Ltd. is prohibited from conducting the business of ‘banking’ as defined in Section 5(b) or any additional business envisaged under Section 6 of the Banking Regulation Act, 1949 with immediate effect. Reserve Bank of India will make an application for winding up before the High Court. Subhadra Local Area Bank Ltd. has enough liquidity to pay all its depositors. (Yogesh Dayal) Press Release: 2020-2021/828 |