India, July 24 -- The Reserve Bank of India (RBI), through an order dated July 22, 2025, has cancelled the banking licence of The Karwar Urban Co-operative Bank Ltd., Karwar. As a result, the bank ceased to carry on banking operations from the close of business on July 23, 2025. The RBI has also requested the Registrar of Co-operative Societies, Karnataka, to issue an order for the bank's winding up and to appoint a liquidator.
The licence was cancelled due to several critical reasons, including:
Inadequate capital and lack of viable earning prospects, rendering the bank non-compliant with Sections 11(1) and 22(3)(d), read with Section 56 of the Banking Regulation Act, 1949.
Failure to meet requirements under Sections 22(3)(a), (b), (c),...