Case Brief
On November 17, 2005, RBI cancelled the licence of Sarvodaya Mahila Co-operative Bank Ltd., Burhanpur, Madhya Pradesh. The bank had ceased to be solvent, its financial condition had deteriorated further despite earlier scrutiny and a show-cause notice, and attempts to revive it had failed. RBI said the move was taken as a final step to protect depositors. The release also notes that the bank had been placed under directions effective May 27, 2005 restricting its operations, and that upon cancellation it was prohibited from carrying on banking business, including acceptance and repayment of deposits. RBI requested the Registrar of Cooperative Societies, Madhya Pradesh to initiate winding up and appoint a liquidator; DICGC-insured deposit repayment up to Rs. 1,00,000 was to be set in motion after liquidation began.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location