The Reserve Bank of India cancelled the licence of Brahmawart Commercial Co-operative Bank based in Kanpur, Uttar Pradesh to carry on banking business, with effect from the close of business on July 03, 2018. RBI felt that the affairs of the bank are being conducted in a manner detrimental to the interest of the present and future depositors.
The Registrar of Co-operative Societies, Uttar Pradesh 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 the bank does not have adequate capital and earning prospects. The bank is not in a position to pay its present and future depositors in full, as and when their claims accrue, RBI release read.
Despite being given reasonable time and opportunity, the bank has not made any serious efforts to improve its financial position which has continued to deteriorate as revealed during inspections conducted with reference to its financial position as on March 31, 2014, March 31, 2015, March 31, 2016 and March 31, 2017, RBI release read.
The present financial position of the bank leaves no scope for its revival. Thus no useful purpose would be served by allowing the bank to continue, rather, public interest would be adversely affected if the bank is allowed to carry on its banking business any further, it read.
Consequent to the cancellation of its licence, Brahmawart Commercial Co-operative Bank Ltd., Kanpur, Uttar Pradesh is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits, the RBI release concluded.