Question
The Reserve Bank of India (RBI) has cancelled the
licence of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited in Kolhapur city. According to RBI, the licence was cancelled as the bank does not have adequate capital and earning prospects and it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with ____________ of the Banking Regulation Act, 1949.Solution
The Reserve Bank of India (RBI) has cancelled the licence of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited in Kolhapur city. The Commissioner for Cooperation and Registrar Cooperative Societies, Maharashtra, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. According to RBI, the licence was cancelled as the bank does not have adequate capital and earning prospects and 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.The bank has also failed to comply with various other sections of the Banking Regulation Act, 1949.
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