The Reserve Bank of India (RBI) cancelled the banking license of Karnataka based Mahalaxmi Co-operative Bank Limited on 27th June 2023. However, the RBI has been allowed to function as a Non-Banking institution.
The RBI has declared that Mahalaxmi Cooperative Bank Ltd., situated in Dharwad, Karnataka, has been officially acknowledged as a non-banking institution as per the provisions outlined in Section 36A(2) and Section 56 of the Banking Regulation Act, 1949.
As a result, the Reserve Bank of India (RBI) has revoked the license issued to Mahalaxmi Cooperative Bank Ltd., located in Dharwad, Karnataka, for conducting banking operations in India.
This action has been taken under Section 22 in conjunction with Section 56 of the Banking Regulation Act, 1949. The cancellation of the license will be effective from the end of business operations on June 27, 2023.
Mahalaxmi Cooperative Bank Ltd., located in Dharwad, Karnataka, is now required to cease all activities related to “banking” as defined in section 5(b) of the Banking Regulation Act.
This includes immediately discontinuing the acceptance of deposits from non-members. Additionally, Mahalaxmi Cooperative Bank Ltd. must ensure the repayment of any unpaid and unclaimed deposits held from non-members, even after being designated as a non-banking institution, upon demand.
The Reserve Bank of India has released the current status of the withdrawal of Rs. 2000 denomination banknotes from circulation. Based on the information provided by the banks, the total value of ₹2000 banknotes that were returned from circulation after the announcement on May 19 amounted to ₹2.72 lakh crore as of June 30, 2023.
Read More: RBI releases Status of Withdrawal of Rs. 2000 banknotes
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