RBI Cancels Licence Of Mahabhairab Cooperative Urban Bank Ltd Due To Financial Non-Compliance

The Reserve Bank of India (RBI) has canceled the license of Mahabhairab Cooperative Urban Bank Ltd due to significant financial non-compliance. The bank failed to adhere to regulatory norms, which resulted in its inability to meet financial obligations and safeguard depositors' interests. Consequently, the RBI has ordered the bank to cease all operations and initiated liquidation proceedings. Customers with deposits in the bank will receive their funds from the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to the insured limit of ₹5 lakhs. The RBI's action aims to protect depositors and ensure financial stability.