The bank with its present financial position would be unable
to pay its present depositors in full and public interest would be adversely
affected if the bank is allowed to carry on its banking business any further,
the RBI said. The Reserve Bank of India (RBI) on February 16 cancelled the
licence of Mantha Urban Cooperative Bank, Maharashtra citing its weak
financials.
The Commissioner for Cooperation and Registrar of
Cooperative Societies, Maharashtra has been requested to issue an order for
winding up the bank and appoint a liquidator for the bank, the central bank
said in a statement. The RBI cancelled the licence of the bank as it does not
have adequate capital and earning prospects, it said.
Consequent to the cancellation of its licence, Mantha Urban
Cooperative Bank is prohibited from conducting the business which includes
acceptance of deposits and repayment of deposits, the RBI said.
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