RBI approved the licence of the Mahalaxmi Cooperative Bank Ltd

RBI approved the licence of the Mahalaxmi Cooperative Bank Ltd(Reserve Bank of India grants licence to Mahalaxmi Cooperative Bank Ltd on  June 27, 2023)

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RBI approved the licence of the Mahalaxmi Cooperative Bank Ltd In a significant move on June 27, RBI approved the licence of the Mahalaxmi Cooperative Bank Ltd of a Non-Banking Institution in Dharwad, Karnataka, thus invoking the status of the bank.

RBI approved the licence of the Mahalaxmi Cooperative Bank Ltd ( full details)

In the notification, RBI said this transition will not stop the bank from acting as a normal bank or engaging in the business of banking and accepting deposits from non-members, with immediate effect. With that banks need to ensure the swift return of all funds, even if they are classified as a non-banking institution by RBI before full transition. “This makes it obligatory on the part of Mahalaxmi Cooperative Bank Ltd., Dharwad, Karnataka 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 Reserve Bank added. In other news, RBI had cancelled the licence of 7 other cooperative banks which were Textile Traders Co-operative Bank Ltd, Ujjain Nagarik Sahakari Bank Maryadit, Panihati Co-operative Bank, The Berhampur Co-operative Urban Bank, Solapur Siddheshwar Sahakari Bank, Uttar Pradesh Co-operative Bank Limited and the Uttarpara Co-operative Bank. The central regulator had imposed a penalty of ₹28 lakhs on Uttar Pradesh Co-operative Bank Limited, and ₹4.50 lakhs on Textile Traders Co-operative Bank Ltd, ₹2.50 lakh penalty on Panihati Co-operative Bank and The Uttarpara Co-operative Bank. Another bank Solapur Siddheshwar Sahakari Bank facing a penalty of ₹1.50 lakh. Similarly, on Ujjain Nagarik Sahakari Bank Maryadit and The Berhampur Co-operative Urban Bank ₹1 lakh each penalty was imposed.

RBI approved the licence of the Mahalaxmi Cooperative Bank Ltd (video)

Which new bank licence was approved by RBI?

Mahalaxmi Bank is the new bank which was approved by the Reserve Bank of India.

Which finance companies are approved by RBI?

The 16 companies which were approved by RBI are LIC Housing Finance, Bajaj Finance, Mahindra & Mahindra Financial Services, Shriram Transport, Tata Sons, L&T Finance, Indiabulls Housing Finance, Piramal Capital & Housing Finance, Cholamandalam Investment and Finance Co., Shanghvi Finance Pvt.

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