CURRENT AFFAIRS : BANKING & FINANCE
RBI cancels Mahalaxmi Cooperative Bank Dharwad’s banking licence & allows it to operate as NBFC
- The Reserve Bank of India (RBI) has cancelled the banking license of the Karnataka-based Mahalaxmi Cooperative Bank, Dharwad, and allowed it to function only as a Non-Banking Financial Company (NBFC).
- The RBI cancelled the banking licence dated March 23, 1994 granted to the Mahalaxmi Cooperative Bank Dharwad.
- This will not stop the bank from conducting the business of ‘banking’ and acceptance of deposits from non-members with immediate effect.
- Further, the bank shall ensure to repay unpaid and unclaimed deposits of non-members held by it, whenever demanded, even after being notified as a non-banking Institution.
