RBI cancels licence of Maharashtra-based Laxmi Co-operative Bank

The Reserve Bank of India (RBI) on Thursday 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 Central bank has also asked the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra to issue an order for winding up the bank and appoint a liquidator for the bank.

The order will be effective from today itself.The RBI in a statement said, "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."