The Haliyal Urban Co-operative Bank Ltd., Haliyal, Karnataka

After a show-cause notice, RBI examined the bank’s reply and concluded that The Haliyal Urban Co-operative Bank Ltd. had no viable plan of action for revival and was unlikely to satisfy licensing norms in the near future. The bank had ceased to be solvent, prior rehabilitation efforts had failed, its financial position had deteriorated considerably, and supervisory instructions over time had not led to improvement. RBI therefore rejected the bank’s licence application under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies) and requested the Registrar of Co-operative Societies, Karnataka to initiate winding up and appoint a liquidator.

The bank is prohibited from carrying on banking business, including acceptance and repayment of deposits. Liquidation proceedings will begin, and depositors will be paid subject to the Deposit Insurance Scheme, up to the applicable insurance ceiling and terms. Depositors may need to approach the bank/RBI contact for clarifications, and the winding-up/liquidation process will determine final repayment outcomes.