Case Brief
The Reserve Bank of India cancelled the licence of Chalisgaon People's Co-operative Bank Ltd., Chalisgaon, District Jalgaon, Maharashtra, after close of business on December 03, 2008. RBI said the bank had ceased to be solvent, efforts to revive it in consultation with the Government of Maharashtra had failed, and the bank did not have any viable plan of action for revival. The release cites deteriorating financial position in statutory inspections as of March 31, 2006 and March 31, 2007, followed by supervisory action and a show-cause notice. RBI also requested the Registrar of Co-operative Societies, Maharashtra to initiate winding-up and appoint a liquidator. Upon liquidation, depositors would be entitled to insurance cover up to Rs. 1,00,000 subject to the Deposit Insurance and Credit Guarantee Corporation scheme.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location