The Reserve Bank of India has cancelled the licence of The Bhopal Nagrik Sahakari Bank Ltd, Bhopal, Madhya Pradesh to carry on banking business, with effect from the close of business on January 22, 2018, according to a late news arriving at Indian Cooperative desk.
The Registrar of Co-operative Societies, Madhya 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 structure 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 and thus the bank does not comply with condition mentioned in section 22(3)(a) read with section 56 of the Banking Regulation Act, 1949”, read a RBI release.
The affairs of the bank are being conducted in a manner detrimental to the interest of the present and future depositors and thus the bank does not comply with condition mentioned in section 22(3)(b) read with section 56 of the Banking Regulation Act, 1949, it reads.
The bank has not taken any positive steps for capital augmentation and financial restructuring and there is no concrete / viable revival plan, says the RBI release.
The financial position of the bank leaves no scope for its revival though the bank has been given ample time and opportunity for turnaround. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further, it concludes.