Case Brief
The Reserve Bank of India cancelled the licence of The Rohe Ashtami Sahakari Urban Bank Ltd., Roha, Dist. Raigad, Maharashtra on 9 September 2008. RBI said the bank had ceased to be solvent, revival efforts in consultation with the Government of Maharashtra had failed, and there was no concrete merger proposal. The bank had earlier been placed under Section 35A directions restricting operations, including a cap of Rs. 500 on deposit withdrawals, and its reply to the show-cause notice was not acceptable. RBI requested the Registrar of Co-operative Societies to issue winding-up orders and appoint a liquidator; upon liquidation, depositors would be entitled to DICGC coverage up to Rs. 1,00,000 subject to scheme conditions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Roha, Maharashtra