Case Brief
The Reserve Bank of India cancelled the banking licence of Indira Sahakari Bank Ltd., Dhule, Maharashtra after finding that the bank had ceased to be solvent and that revival efforts in consultation with the Government of Maharashtra had failed. RBI noted deteriorating and precarious financial conditions, and that the bank failed to present any viable turnaround plan in response to the show-cause notice. Following the cancellation, RBI requested the Registrar of Co-operative Societies, Maharashtra to order winding up and appoint a liquidator. The release also recalls prior Section 35A directions that barred fresh deposits and further lending and limited deposit repayment, and states that the bank is prohibited from carrying on banking business, including accepting and repaying deposits.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location