Case Brief
The Reserve Bank of India cancelled the licence of Shri Balasheb Satbhai Merchants Co-operative Bank Ltd., Kopergaon, Ahmednagar, Maharashtra on March 29, 2007. RBI said the bank had ceased to be solvent, its financial position had worsened over time, and all efforts to revive it in consultation with the Government of Maharashtra had failed. A statutory inspection indicated impaired finances, later scrutiny showed a precarious position, and RBI had already issued Section 35A directions in October 2004. After a show-cause notice and examination of the reply, RBI concluded there was no viable revival plan and cancelled the licence. RBI also requested the Registrar of Co-operative Societies, Maharashtra to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location