Case Brief
The Reserve Bank of India cancelled the licence of The Priyadarshini Mahila Sahakari Bank Ltd., Latur, Maharashtra, after concluding that the bank had ceased to be solvent and that all efforts to revive it had failed. RBI noted that the bank’s financial position was impaired/precarious, earlier Section 35A directions had restricted its operations, and no viable turnaround plan or regulatory-compliance proposal was available. The bank was also served a show-cause notice before the final decision. RBI requisitioned the Commissioner for Co-operation and Registrar of Co-operative Societies, Maharashtra to issue a winding-up order and appoint a liquidator. Upon liquidation, depositors would be entitled to insurance-backed repayment up to the prescribed DICGC ceiling, subject to usual terms and conditions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location