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RBI cancelled licence of Mudhol Co-op Bank, Bagalkot, Karnataka

RBI cancelled licence of Mudhol Co-op Bank, Bagalkot, Karnataka

The Reserve Bank has cancelled the licence of The Mudhol Co-operative Bank Limited, Bagalkot (Karnataka), thus restricting it from repayment of deposits and acceptance of fresh funds. The bank does not have adequate capital and earning prospects, the Reserve Bank of India (RBI) said on Wednesday while announcing the cancellation of licence. RBI also said that bank with its present financial position would be unable to pay its present depositors in full.

Why this step taken by RBI?

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