Case Brief
The Reserve Bank of India cancelled the licence of Purna Nagari Sahakari Bank Ltd., Purna, Dist. Parbhani (Maharashtra) after concluding that the bank had ceased to be solvent and that all efforts to revive it had failed. RBI noted that the bank’s financial position was precarious, deposits were getting eroded, and the realizable value of paid-up capital and reserves was negative. The release also records prior Section 35A directions, a show-cause notice, and repeated inspections that confirmed further deterioration. RBI acted to protect depositor interests and requested the Registrar of Co-operative Societies, Maharashtra to initiate winding up and appoint a liquidator. Consequent to the cancellation, the bank was prohibited from carrying on banking business, including acceptance and repayment of deposits, and depositors would be dealt with under the Deposit Insurance Scheme up to the applicable ceiling.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location