RBI Cancels Licence of Maharashtra’s Shankarrao Pujari Bank & UP’s Urban Co-operative Bank

Current Context: The Reserve Bank of India (RBI) has indeed cancelled the licence of the Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Ichalkaranji, Kolhapur. The cancellation was effective from the close of business on December 4, 2023.

• The reasons for the cancellation were as follows:
• The bank did not have adequate capital and earning prospects.
• It did not comply with the provisions of Section 11 (1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949.
• The bank failed to comply with the requirements of Sections 22 (3) (a), 22 (3) (b), 22 (3) ©, 22 (3) (d) and 22 (3) (e) read with Section 56 of the Banking Regulation Act, 1949.
• The continuance of the bank was prejudicial to the interests of its depositors.
• The bank, with its present financial position, would be unable to pay its present depositors in full.
• The public interest would be adversely affected if the bank were allowed to carry on its banking business any further.

Question:

Q.1 What was the effective date of the cancellation of the license of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited?
a. December 1, 2023
b. December 4, 2023
c. December 5, 2023
d. December 6, 2023