Case Brief
The Reserve Bank of India cancelled the licence of The Ichalkaranji Jiveshwar Sahakari Bank Ltd., Ichalkaranji, Dist. Kolhapur, Maharashtra, after determining that the bank had ceased to be solvent and that revival efforts had failed. RBI had earlier issued Section 35A directions with a cap on individual depositor withdrawals and later superseded the board for mismanagement. A subsequent inspection showed further deterioration, with erosion of deposits and negative realizable value of paid-up capital and reserves. RBI concluded there was no viable revival plan and cancelled the licence to protect depositor interests, while also requesting the Registrar of Co-operative Societies, Maharashtra to initiate winding up and appoint a liquidator. The bank is consequently prohibited from carrying on banking business, including accepting and repaying deposits, and depositors will be paid insured amounts under the DICGC framework subject to applicable terms and conditions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location