RBI notifies Adoor Co-operative Urban Bank as a non-banking Institution

The Reserve Bank of India (RBI) has revoked the banking license of the Kerala-based Adoor Co-operative Urban Bank Ltd and declared it a non-banking institution.

The bank’s license and new classification as a non-banking institution were revoked under various sections of the Banking Regulation Act 1949, according to an RBI statement.

It added that the Reserve Bank of India had revoked the banking license of the Urban Adoor Co-operative Bank to conduct banking business under the Banking Regulation Act, 1949, with effect from closing the business on 24 April 2023. The bank was granted the license in January 1987.

“This makes it mandatory on the part of Adoor Urban Co-operative Bank, Adoor to cease conducting ‘banking’ business… including accepting deposits from non-members with immediate effect,” the RBI said.

Further, the bank is required to repay the unpaid and unclaimed non-member deposits it holds, on demand, even after being notified as a non-banking institution.