<h1>Banking licence rejection protects depositors; RBI prohibited the bank from conducting banking business and initiated winding up.</h1> Reserve Bank refused the bank's licence application after NABARD and regulatory scrutiny found negative paid up capital and reserves, failure to meet minimum licensing norms and no viable revival plan. The regulator placed the bank under directions for liquidity stress, served show cause notices, and, finding replies unsatisfactory, requested winding up and appointment of a liquidator. Insured depositors will be paid under the deposit insurance framework and the bank is prohibited from carrying on banking business including acceptance and repayment of deposits.