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2026-01-31T05:21:52Z

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{{Short description|Bank in Mumbai, India}}
{{pp-extended|small=yes}}
{{Orphan|date=October 2025}}
{{Infobox company
| name = Kapol Co-operative Bank Limited
| type = [[Cooperative bank]]
| industry = [[Banking]], [[Financial services]]
| founded = 1939
| defunct = 2023
| fate = Licence cancelled, under liquidation
| hq_location_city = [[Mumbai]], Maharashtra
| hq_location_country = India
| area_served = Maharashtra, Gujarat
| products = [[Deposit account|Deposit]]s, [[loan]]s, [[banking services]]
| website = {{URL |https://www.kapolbank.com/}} (archived)
}}

The '''Kapol Co-operative Bank Limited''' was an Indian multi-state scheduled urban [[co-operative bank]] based in Mumbai, Maharashtra. It was established in 1939 and primarily served the Kapol community and operated branches in Maharashtra and Gujarat.

In 2023, the bank faced significant financial irregularities and fraud allegations, leading to stringent regulatory actions by the [[Reserve Bank of India]] (RBI). In 2023, the RBI cancelled its banking licence due to inadequate capital and poor earning prospects, and the bank was placed under liquidation.<ref name="RBI2023">{{cite web |url=https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56393 |title=RBI Press Release: Cancellation of Licence |publisher=Reserve Bank of India |date=25 September 2023 |access-date=31 August 2025}}</ref><ref name="Mint2023">{{cite web |url=https://www.livemint.com/companies/news/rbi-cancels-licence-of-the-kapol-co-operative-bank-over-earnings-prospects-11695718315797.html |title=RBI cancels licence of Kapol Bank over earnings prospects |publisher=Mint |date=26 September 2023 |access-date=31 August 2025}}</ref>

== History ==
According to the company, it was founded in 1939 as a credit society for the Kapol community, and later evolved into a scheduled urban co-operative bank. It expanded its footprint in Maharashtra and Gujarat<ref>{{Cite web |title=The kapol Co-Oprative Bank ltd. |url=https://www.kapolbank.com/about.html |access-date=2025-09-01 |website=www.kapolbank.com}}</ref> but began facing financial and governance challenges by the early 2000s.

In 2003, a bank director was granted bail in an extortion case.<ref>{{cite web |date=2003 |title=Kapol Bank Director Granted Bail |url=https://timesofindia.indiatimes.com/Kapol-bank-director-granted-bail/articleshow/34608589.cms |access-date=31 August 2025 |publisher=Times of India}}</ref> In 2013, director Hiren Mehta was arrested for aiding three businessmen in siphoning off ₹14.5 crore through forged letters of credit.<ref>{{cite web |url=https://timesofindia.indiatimes.com/city/mumbai/co-op-bank-director-arrested-for-aiding-3-siphon-off-rs-14cr/articleshow/27259411.cms |title=Co-op bank director arrested for aiding siphoning of ₹14 crore |publisher=Times of India |date=13 December 2013 |access-date=31 August 2025}}</ref> In 2019, former bank officer Jayanta Dimbeshwar Das was arrested for his role in a ₹15 crore letters of credit scam.<ref>{{cite web |url=https://timesofindia.indiatimes.com/city/mumbai/on-the-run-for-5-years-bank-officer-held-for-aiding-15-crore-letters-of-credit-scam/articleshow/72314113.cms |title=On the run for 5 years, bank officer held for aiding ₹15 crore scam |publisher=Times of India |date=1 December 2019 |access-date=31 August 2025}}</ref>

In March 2017, the RBI imposed restrictions under Section 35A of the [[Banking Regulation Act, 1949]], limiting withdrawals to ₹3,000 per account and prohibiting new loans or deposits without prior approval.<ref name="RBI2017">{{cite web |url=https://www.rbi.org.in/commonman/english/scripts/PressReleases.aspx?Id=2138 |title=RBI Press Release: Kapol Bank placed under Directions |publisher=Reserve Bank of India |date=31 March 2017 |access-date=31 August 2025}}</ref><ref>{{cite web |date=2017 |title=RBI Puts Curbs on Kapol Bank Withdrawals |url=https://economictimes.indiatimes.com/markets/stocks/news/rbi-puts-curbs-on-kapol-bank-withdrawals/articleshow/57958198.cms |access-date=31 August 2025 |publisher=The Economic Times}}</ref> These curbs were extended multiple times, including through April 2021 and October 2022.<ref>{{cite web |url=https://www.indiancooperative.com/cooperative/urban/no-respite-for-kapol-co-op-bank/ |title=No Respite for Kapol Co-op Bank |publisher=Indian Cooperative |date=2021 |access-date=31 August 2025}}</ref><ref>{{cite web |url=https://www.rbi.org.in/commonman/english/scripts/PressReleases.aspx?Id=3354 |title=RBI Press Release: Extension of Directions till Oct 2022 |publisher=Reserve Bank of India |date=30 April 2022 |access-date=31 August 2025}}</ref>

In June 2021, Kapol Bank consented to a potential merger with [[Cosmos Co-operative Bank Ltd|Cosmos Co-operative Bank]], who has previously acquired five banks.<ref>{{Cite web |last=Kumar |first=K. Ram |date=2021-06-24 |title=Kapol Co-op bank takes first step towards amalgamation with Pune-based Cosmos Bank |url=https://www.thehindubusinessline.com/money-and-banking/kapol-co-op-bank-takes-first-step-towards-amalgamation-with-pune-based-cosmos-bank/article34953208.ece |access-date=2025-09-01 |website=BusinessLine |language=en}}</ref> In January 2025, the Reserve Bank of India approved the merger.<ref>{{Cite web |title=RBI clears National, Cosmos Co-operative Bank merger, effective January 6 |url=https://www.business-standard.com/industry/banking/rbi-clears-national-cosmos-co-operative-bank-merger-effective-january-6-125010300993_1.html |archive-url=https://web.archive.org/web/20250104133657/https://www.business-standard.com/industry/banking/rbi-clears-national-cosmos-co-operative-bank-merger-effective-january-6-125010300993_1.html |archive-date=2025-01-04 |access-date=2025-09-01 |website=www.business-standard.com |language=en-US |url-status=live }}</ref>

On 25 September 2023, the RBI cancelled the bank's licence, citing non-compliance with capital and operational requirements under the Banking Regulation Act, 1949, and its inability to pay depositors in full.<ref name="RBI2023" /><ref name="BusinessStandard2023">{{cite web |url=https://www.business-standard.com/finance/news/rbi-cancels-licence-of-mumbai-based-the-kapol-co-operative-bank-123092500957_1.html |title=RBI cancels licence of Mumbai-based Kapol Bank |publisher=Business Standard |date=25 September 2023 |access-date=31 August 2025}}</ref><ref>{{cite web |url=https://bfsi.economictimes.indiatimes.com/news/banking/rbi-cancels-licence-of-kapol-cooperative-bank-in-mumbai/104002378 |title=RBI cancels licence of Kapol Bank in Mumbai |publisher=ET BFSI |date=28 September 2023 |access-date=31 August 2025}}</ref><ref>{{cite web |url=https://www.ndtv.com/mumbai-news/rbi-cancels-license-of-mumbai-based-the-kapol-co-operative-bank-4422858 |title=RBI Cancels Licence of Kapol Bank (Mumbai edition) |publisher=NDTV |date=25 September 2023 |access-date=31 August 2025}}</ref>

On 8 November 2023, the Central Registrar of Cooperative Societies (CRCS) ordered the bank's liquidation and appointed Shardul S. Jadhav as liquidator.<ref>{{cite web |url=https://crcs.gov.in/public/uploads/society_notification/654e0e5192f7e_liquidationorderofkapolcoopbankltd.pdf |title=Liquidation Order (Official CRCS PDF) |publisher=Central Registrar of Cooperative Societies |date=8 November 2023 |access-date=31 August 2025}}</ref> By July 2023, the [[Deposit Insurance and Credit Guarantee Corporation]] (DICGC) had disbursed ₹230.16 crore to 96.09% of depositors, covering insured deposits up to ₹5 lakh.<ref>{{cite web |url=https://www.moneylife.in/article/kapol-cooperative-bank-rbi-clarifies-issues-raised-by-customers/72831.html |title=Kapol Bank: RBI Clarifies Issues Raised by Customers |publisher=Moneylife |date=15 December 2023 |access-date=31 August 2025}}</ref> In April 2024, the RBI excluded the bank from the Second Schedule of the RBI Act, 1934. The liquidator's term was extended to November 2025 to address ongoing recovery and legal proceedings.<ref>{{cite web |url=https://crcs.gov.in/public/uploads/society_notification/672dbaa3c78fd_thekapolurbancooperativebankltdextesionorder.pdf |title=Liquidator's term extended (Official CRCS Order) |publisher=Central Registrar of Cooperative Societies |date=2024 |access-date=31 August 2025}}</ref><ref>{{cite web |url=https://www.indiancooperative.com/co-op-news-snippets/nagar-ucb-kapol-co-op-bank-term-of-liquidators-extended/ |title=Nagar UCB & Kapol Co-op Bank: Term of liquidators extended |publisher=Indian Cooperative |date=2024 |access-date=31 August 2025}}</ref>

== See also ==
* [[List of banks in India]]

== References ==
{{Reflist}}

== External links ==
* {{Cite web |url=https://economictimes.indiatimes.com/topic/kapol-co-operative-bank/news |title=Economic Times – Kapol Co-op Bank Topic Page |access-date=31 August 2025}}
* {{Cite web |url=https://www.india.com/topic/kapol-co-operative-bank/ |title=India.com – Kapol Co-op Bank Latest Updates |access-date=31 August 2025}}
* {{Cite web |url=https://news.abplive.com/topic/kapol-bank |title=ABP Live – Kapol Bank Topic Page |access-date=31 August 2025}}
* {{Cite web |url=https://www.moneycontrol.com/news/tags/kapol-co-operative-bank.html |title=Moneycontrol – Kapol Co-op Bank Tag Page |access-date=31 August 2025}}
* {{Cite web |url=https://www.business-standard.com/search?type=news&q=kapol+co-operative+bank |title=Business Standard – Search results for Kapol Co-op Bank |access-date=31 August 2025}}
* {{Cite web |url=https://bfsi.economictimes.indiatimes.com/tag/kapol-cooperative-bank |title=ET BFSI – Archive Page for Kapol Co-op Bank |access-date=31 August 2025}}

{{Banking in India}}

{{DEFAULTSORT:Kapol Co-operative Bank}}
[[Category:Defunct banks of India]]
[[Category:Banks established in 1939]]
[[Category:Companies based in Mumbai]]
[[Category:Cooperative banks of India]]

Kapol Co-operative Bank - Revision history

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