MANU/RPRL/0184/2020
Ministry : Reserve Bank of India
Department/Board : Press Releases
Press Release No. : 2020-2021/744
Date : 08.12.2020
Reserve Bank of India cancels the licence of the Karad Janata Sahakari Bank Ltd, Karad, Maharashtra
The Reserve Bank of India (RBI) has, vide order dated December 7, 2020 cancelled the licence of The Karad Janata Sahakari Bank Ltd., Karad, Maharashtra to carry on banking business, with effect from from the close of business on December 7, 2020. The bank was under All Inclusive Directions since November 07, 2017. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
The Reserve Bank cancelled the licence of the bank as:
i. 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.
ii. The bank has failed to comply with the requirements of section 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with section 56 of the Banking Regulation Act, 1949;
iii. The continuance of the bank is prejudicial to the interests of its depositors;
iv. The bank with its present financial position would be unable to pay its present depositors in full; and
v. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.