Reserve Bank of India Statutory Press Release
Press Release Ref: 2020-2021/828 | Date: December 24, 2020
Official statutory notice regarding the cancellation of the banking licence issued to Subhadra Local Area Bank Ltd., Kolhapur, Maharashtra under Section 22 (4) of the Banking Regulation Act, 1949, effective from close of business on December 24, 2020.
RBI Cancels the Licence of Subhadra Local Area Bank Ltd., Kolhapur, Maharashtra
Department of Communication, Central Office, S.B.S. Marg, Mumbai-400001
The Reserve Bank of India (RBI) has, vide order dated December 24, 2020, cancelled the banking licence issued to Subhadra Local Area Bank Ltd., Kolhapur, Maharashtra under Section 22 (4) of the Banking Regulation Act, 1949 to carry on banking business in India. The order is made effective from close of business on December 24, 2020.
Grounds for Cancellation as Cited by the RBI
Depositor Interest Conduct
The affairs of Subhadra Local Area Bank Ltd. were conducted in a manner detrimental to the interests of its present and future depositors.
Public Interest Impact
Public interest would be adversely affected if allowed to continue to do banking business in the manner in which it is functioning.
Management Character
The general character of the management is considered prejudicial to the interest of present and future depositors.
Business Prohibitions
Consequent to licence cancellation, Subhadra Local Area Bank Ltd. is prohibited from conducting the business of 'banking' as defined in Section 5(b) or any additional business envisaged under Section 6 of the Banking Regulation Act, 1949 with immediate effect.
High Court Application
The Reserve Bank of India will make an application for winding up before the High Court in accordance with applicable statutory provisions.
Depositor Financial Liquidity Assurance
Official RBI Statement on Liquidity Status
The Reserve Bank of India confirmed that the bank maintains sufficient liquidity reserves to satisfy all present depositor liabilities in full.
In the High Court of Delhi at New Delhi
Coram: Hon'ble Mr. Justice Rajneesh Kumar Gupta | Order Dated: March 12, 2026
Subhadra Local Area Bank Limited v. Union of India & Ors.
• Petitioner Counsel: Mr. Neeraj Chaudhari and Mr. Akshay Chandra, Advs.
• Respondents Counsel: Ms. Arunima Dwivedi (CGSC for UOI), Mr. Abhinav Sharma, Mr. Dipan Sethi, Mr. Snehashish (for RBI), Mr. Yadunath Bhargavan (for R-3).
Shareholders Committee, Subhadra Local Area Bank Limited v. Union of India & Ors.
• Petitioner Counsel: Mr. Yadunath Bhargavan, Adv.
• Respondents Counsel: Mr. Abhinav Sharma, Mr. Dipan Sethi, Mr. Snehashish (for RBI), Mr. Neeraj Chaudhari & Mr. Akshay Chandra (for R-3).
1. Hearing conducted through hybrid mode.
2. Next Date of Hearing Listed on: 07th September, 2026