RBI cancels licence of Maharashtra-based bank; operations to cease from Thursday

Reserve Bank of India (RBI) on Thursday said it cancelled the license of Laxmi Co-operative Bank Limited, a Solapur, Maharashtra-based lender. In a statement issued today, the central bank said the bank ceases to carry on banking business, with effect from the close of business on September 22, 2022.

“Today, the Reserve Bank of India (RBI), vide order dated September 14, 2022, has cancelled the licence of “The Laxmi Co-operative Bank Limited, Solapur, Maharashtra”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on September 22, 2022. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank,” the RBI statement read.

The banking regulator further said Laxmi Co-operative Bank Limited will not be allowed to conduct any banking business from September 22.

“The Laxmi Co-operative Bank Limited, Solapur, Maharashtra” is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect."