The Reserve Bank of India (RBI) has cancelled the licence of Millath Cooperative Bank Ltd., Davangere, and the bank ceased to carry on banking business, with effect from the close of business on June 18, 2022.
The Registrar of Cooperative Societies, Karnataka, has also been requested to issue an order for winding up the bank and appoint a liquidator.
“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,” said an RBI release.
The bank had failed to comply with the requirements of various sections of the Banking Regulation Act, 1949, and the continuance of the bank was prejudicial to the interests of its depositors, the RBI said.
"The bank with its present financial position would be unable to pay its present depositors in full; and the public interest would be adversely affected if the bank is allowed to carry on its banking business any further," the RBI said.
