RBI cancels licence of Solapur-based Laxmi Co-operative Bank

RBI cancels licence of Solapur-based Laxmi Co-operative Bank


NEW DELHI: The Reserve Bank of India (RBI) on Thursday cancelled licence of The Laxmi Co-operative Bank Limited in Solapur, Maharashtra citing inadequate capital and earning prospects.
As a result, the bank has been prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits.
“The bank with its present financial position would be unable to pay its present depositors in full,” the RBI said in an official release.
Public interest would be adversely affected if the bank is allowed to carry on its banking business any further, it added.


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