Case Brief
The Reserve Bank of India cancelled the licence of Nagrik Sahakari Bank Maryadit, Ratlam, Madhya Pradesh on December 7, 2005. RBI said the bank had ceased to be solvent, its financial position had continued to worsen, and efforts to revive it with the Government of Madhya Pradesh had failed. The bank had earlier been classified as sick, placed under rehabilitation, subjected to a show-cause notice, and later put under operational directions restricting its business. RBI took the final step of cancelling the licence in the interest of depositors and requested the Registrar of Cooperative Societies, Madhya Pradesh to initiate winding-up and appoint a liquidator. Upon liquidation, depositors would be entitled to insured repayment up to Rs. 1,00,000 through DICGC, and the bank was prohibited from carrying on banking business including acceptance and repayment of deposits.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location