Licence of Dyanopasak Urban Co-operative Bank Ltd., Parbhani Cancelled

Case Brief

The Reserve Bank of India cancelled the licence of Dyanopasak Urban Co-operative Bank Ltd., Parbhani, on 12 August 2008. RBI said the bank had ceased to be solvent, its financial position was impaired, and repeated efforts to revive it in consultation with the Government of Maharashtra had failed. The bank had earlier been placed under Section 35A directions restricting operations, and a show-cause notice was later issued before RBI finally cancelled the licence. RBI also requisitioned the Commissioner for Co-operation and Registrar of Co-operative Societies, Maharashtra, to issue a winding-up order and appoint a liquidator. After cancellation, the bank is prohibited from carrying on banking business, including acceptance and repayment of deposits.