Case Brief
The Reserve Bank of India cancelled the banking licence of Parivartan Co-operative Bank Ltd., Mumbai, Maharashtra, on June 4, 2007. The release says the bank had ceased to be solvent, its financial position was severely impaired, revival efforts had failed, and it had no viable revival plan. RBI had earlier issued operational instructions, advised supersession of the board, and later issued Section 35A directions as the bank's condition deteriorated. After a show-cause notice and review of the reply, RBI took the extreme step of cancelling the licence and requested the Registrar of Co-operative Societies, Maharashtra to issue an order for winding up and appoint a liquidator. Consequent to cancellation, the bank was prohibited from carrying on banking business, including acceptance and repayment of deposits, and depositors would be paid subject to the Deposit Insurance Scheme up to the prescribed ceiling.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location