Case Brief
The Reserve Bank of India cancelled the licence of Miraj Urban Co-operative Bank Limited, Miraj, Maharashtra after finding that the bank had ceased to be solvent and that revival efforts had failed. The release states that the bank's financial condition had been impaired in earlier inspections, that Section 35A directions had already restricted its operations including withdrawal limits, and that a later inspection showed further deterioration, 49.8% deposit erosion, and no concrete merger proposal. RBI also asked the Registrar of Co-operative Societies, Maharashtra to initiate winding up and appoint a liquidator. Consequent to the cancellation, the bank is prohibited from carrying on banking business, including acceptance and repayment of deposits, and depositors' claims will be processed subject to the Deposit Insurance Scheme and applicable limits.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location