RBI Cancels Licence of Mahabhairab Cooperative Urban Bank, Tezpur

The Reserve Bank of India (RBI) has cancelled the license of Mahabhairab Cooperative Urban Bank, Tezpur, effective July 21, 2023, due to its inadequate capital and earning prospects. Consequently, the bank can no longer conduct banking business, including accepting deposits and repaying depositors. The RBI stated that the bank's financial condition was deteriorating and it failed to comply with regulatory requirements. This action ensures the protection of depositors' interests. Additionally, eligible depositors will receive a deposit insurance claim up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The bank had been under RBI’s Direction since October 2023 due to non-compliance with various regulations.