Case Brief
The Reserve Bank of India cancelled the banking licence of Goregaon Co-operative Urban Bank Ltd., Goregaon, District Raigad, Maharashtra, after concluding that the bank had ceased to be solvent and had no viable revival plan. RBI said statutory inspection showed its financial position was impaired, supervisory action had been initiated earlier, and efforts to revive the bank in consultation with the Government of Maharashtra had failed. As a consequence, the Registrar of Co-operative Societies, Maharashtra was requested to initiate winding-up and appoint a liquidator. RBI also reiterated that, following cancellation, the bank is prohibited from carrying on banking business, including acceptance and repayment of deposits, and that depositor repayment would proceed under the Deposit Insurance Scheme subject to its terms and conditions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location