The Urban Co-operative Bank Ltd., Bhubaneswar

RBI cancelled the licence of The Urban Co-operative Bank Ltd., Bhubaneswar. The bank was found insolvent, non-compliant with RBI norms, and beyond revival.

The bank can no longer conduct banking business, accept deposits, or repay deposits except through the liquidation / deposit insurance process. Depositors will be paid subject to the Deposit Insurance and Credit Guarantee Corporation ceiling and usual terms, while winding up and liquidation proceedings are to begin.

• Section 22 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
• Section 35 of the Act
• Section 35A of B. R. Act, 1949 (AACS)

+5 more in the case brief

RBI imposed a penalty of Rs 1 lakh on The Urban Co-operative Bank Ltd., Bhubaneswar. The bank had failed to submit/publish its accounts and balance sheet for 2010-11 within the stipulated time.

The bank must absorb the monetary penalty; there is no operational restriction described in this release. The action is retrospective in nature and does not indicate any new cap, suspension, or licensing consequence for depositors or counterparties.

• Section 47A (1)(b) read with Section 46(4) of the Banking Regulation Act, 1949
• Section 31 of the Banking Regulation Act, 1949 (AACS)