Case Brief
The Reserve Bank of India cancelled the banking licence of The Laxmeshwar Urban Co-operative Credit Bank Ltd., Laxmeshwar, Karnataka with effect after close of business on February 05, 2008. RBI said the bank had ceased to be solvent, efforts to revive it had failed, and inspections showed a persistently precarious financial condition with no turnaround possible. Earlier, the bank had been placed under directions with a deposit withdrawal limit of Rs. 1,000 per depositor. Following cancellation, the bank is to enter liquidation, and the Registrar of Co-operative Societies, Karnataka has been asked to initiate winding-up and appoint a liquidator. Depositors are eligible to claim insured deposits up to the DICGC ceiling.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Laxmeshwar, Karnataka