RBI Cancels Licence Of Kerala-based Ananthasayanam Co-operative Bank – News18

The Reserve Bank of India (RBI), on September 21, cancelled the license of The Ananthasayanam Co-operative Bank. The central bank has allowed it to function as a non-banking institution. It also has asked the bank to repay the unpaid and unclaimed deposits on non-members held by it whenever demanded, even after being notified as a non-banking institution.

In the release, the RBI said, “This makes it obligatory on the part of The Ananthasayanam Co-operative Bank Ltd., Trivandrum to stop conducting the business of ‘banking’ within the meaning of section 5(b) of the Act ibid, including acceptance of deposits from non-members with immediate effect.”

The Ananthasayanam Co-operative Bank’s licence was granted by RBI on December 19, 1987, to carry on banking business in India.

In July, RBI also cancelled the licence of Uttar Pradesh-based United India Co-operative Bank Limited as the bank doesn’t have adequate capital. The bank ceases to carry on banking business with effect from the close of business on July 19, this year. The RBI has also requested the Commissioner and Registrar of Cooperative, Uttar Pradesh to issue an order for winding up the bank and appoint a liquidator for the bank.

Along with this, RBI has also cancelled the license of two co-operative banks, National Urban Co-operative Bank and Sri Mallikarhuna Pattana Sahakari Bank Niyamita over inadequate capital and earning prospects.

The press statement released by RBI noted, “The continuance of the bank is prejudicial to the interests of its depositors, the bank with its present financial position would be unable to pay its present depositors in full and public interest would be adversely affected if the bank is allowed to carry on its banking business any further.”

After the cancellation of the license, both banks were prohibited from conducting banking businesses including acceptance of deposits and repayment of deposits with immediate effect.