Case Brief
The Reserve Bank of India cancelled the licence of Shriram Sahakari Bank Ltd., Nashik, Maharashtra on June 13, 2006, after concluding that the bank had ceased to be solvent and that all revival attempts had failed. RBI noted that inspection of the bank showed an unsatisfactory and later deteriorating financial position, erosion of deposits, negative realizable value of capital and reserves, violation of earlier RBI directions, and gross mismanagement that had already led to supersession of the board. The bank had also been issued a show-cause notice before the cancellation. RBI requested the Registrar of Co-operative Societies, Maharashtra to initiate winding up and appoint a liquidator, and stated that deposit repayment would proceed subject to DICGC terms and conditions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location