The Reserve Bank of India (RBI) has cancelled the banking license of Kerala-based Adoor Co-operative Urban Bank Ltd and notified it as a non-banking Institution.
The cancellation of the bank’s license and its new categorisation as a non-banking Institution have been done under various sections of the Banking Regulation Act, 1949, per a RBI statement.
RBI cancelled the banking licence of Adoor Co-operative Urban Bank to carry on banking business under the Banking Regulation Act,1949, with effect from the close of business on April 24, 2023, it added. The Bank was granted license in January 1987.
“This makes it obligatory on the part of The Adoor Co-operative Urban Bank, Adoor to stop conducting the business of ‘banking’…including acceptance of deposits from non-members with immediate effect,” RBI said.
Further, the bank has to repay unpaid and unclaimed deposits of non-members held by it, whenever demanded, even after being notified as non-banking Institution.