Banking Licence of Subhadra Local Area Bank at Kolhapur, Maharashtra under Section 22 (4) of the Banking Regulation Act, 1949 was cancelled by Reserve Bank of India (RBI) with immediate effect from December 24, 2020. But the bank has enough liquidity funds to refund the deposit amounts to its customers.

Reason for Licence Cancellation

• RBI had cancelled the licence due to the bank’s activities lead to affecting the interests of the Bank’s current and future depositors.

• The bank had also breached the minimum net worth requirement for two quarters in the financial year 2019-20.

As per Section 5(b), Subhadra Local Area Bank is banned from conducting the business of ‘banking’ or any additional business activities under Section 6 of the Banking Regulation Act, 1949 with immediate effect.

About Subhadra Local Area Bank

Headquarters – Kolhapur, Maharashtra

MD & CEO – Mr.Sanjay Aggarwal