Case Brief
The Reserve Bank of India cancelled the licence of The Kittur Rani Channamma Mahila Pattana Sahakari Bank Niyamita, Hubli, Karnataka, after concluding that the bank had ceased to be solvent and that revival efforts in consultation with the Government of Karnataka had failed. RBI said successive statutory inspections showed the bank's financial position had deteriorated further, the reply to the show-cause notice was unsatisfactory, and earlier irregularities continued to persist. Following cancellation, RBI requested the Registrar of Co-operative Societies, Karnataka, to order winding up and appoint a liquidator. The release also notes that the bank had previously been placed under Section 35A directions restricting operations, including a cap on deposit withdrawals of Rs.1,000 per depositor.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location