Case Brief
The Reserve Bank of India cancelled the licence of Vasantdada Shetkari Sahakari Bank Limited, Sangli, Maharashtra, with effect from January 7, 2009. RBI said the bank had ceased to be solvent, revival efforts with the Government of Maharashtra had failed, and the uncertainty was inconveniencing depositors. The bank’s response to the show-cause notice was found unsatisfactory, and it had not produced any concrete revival or merger plan. RBI also requested the Registrar of Co-operative Societies, Maharashtra to initiate winding-up proceedings and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Sangli, Maharashtra