Case Brief
The Reserve Bank of India cancelled the banking licence of Shri Siddhi Venkatesh Sahakari Bank Ltd., Jalgaon, Maharashtra after concluding that the bank had ceased to be solvent and that revival efforts had failed. RBI noted that inspections showed the bank's financial position was impaired and later deteriorated further, and that the bank had no viable plan of action for revival. The bank had earlier been placed under Section 35A directions restricting operations, including a cap of Rs. 1,000 on withdrawals. Following the cancellation, RBI requested the Registrar of Co-operative Societies, Maharashtra to issue a winding-up order and appoint a liquidator. The bank is prohibited from carrying on banking business, including acceptance and repayment of deposits, and deposit repayment will proceed under the DICGC scheme subject to its limits and conditions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location