RBI grants non-banking institution licence to Mahalaxmi Cooperative Bank, cancels bank permit

Reserve Bank of India

The Reserve Bank of India (RBI) on June 27 said it has granted non-banking institutions licence to Mahalaxmi Cooperative Bank Ltd, Dharwad, Karnataka, after cancelling its banking permit.

Accordingly, RBI has cancelled the licence dated March 23, 1994, granted to Mahalaxmi Cooperative Bank Ltd, Dharwad, Karnataka to carry on banking business in India, with effect from the close of business on June 27, the release said.

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.