Case Brief
The Reserve Bank of India cancelled the licence of Indira Priyadarshini Mahila Nagrik Sahakari Bank Mydt., Chhattisgarh State, after determining that the bank had ceased to be solvent and that attempts to revive it had failed. RBI noted that statutory inspections revealed serious irregularities and deficiencies, and that the bank’s financial position was severely impaired. The bank had already been placed under Section 35A directions, and the Registrar of Co-operative Societies had superseded its Board of Directors. Following a show-cause notice and review of revival options, RBI concluded that the bank had no viable revival plan and that the chances of revival were remote. The release states that the licence cancellation is followed by winding up and liquidation proceedings, and depositors would be entitled to DICGC insurance up to Rs. 1,00,000 per depositor.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location