Reserve Bank of India cancels license of Mudhol Co-operative Bank

The Reserve Bank of India canceled the license of The Mudhol Co-Operative Bank Ltd. for lacking sufficient capital and earnings prospects.

Based on the bank's financial position, the central bank said June 8 the lender will be unable to pay its depositors in full and its continued operations would be prejudicial to the public interest.

The Commissioner for Cooperation and Registrar of Cooperative Societies in the Indian state of Karnataka requested to wind up the bank and appoint a liquidator.

The Karnataka-based lender ceased banking operations the same day.