The Reserve Bank of India (RBI) cancelled the licence of Rajasthan-based Sumerpur Mercantile Urban Cooperative Bank Limited

Current GK (IBPS-PO) Rural Banking and financial institutions

29-Feb-24

The Reserve Bank of India (RBI) on February 27 said it has cancelled the licence of Rajasthan-based Sumerpur Mercantile Urban Cooperative Bank Limited citing weak financials, following which the bank will cease to carry on banking business.

The cancellation is with effect from the close of business on February 28, 2024, the RBI said.

Further, the registrar of cooperative societies of Rajasthan has been requested to issue an order for winding up the bank and appoint a liquidator for the bank, the RBI said.

RBI said it cancelled the licence of the bank as it was found to not have adequate capital and earning prospects and 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, the banking regulator said.

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