Case Brief
The Reserve Bank of India cancelled the licence of Deendayal Nagrik Sahakari Bank Maryadit, Khandwa, Madhya Pradesh, after finding that the bank had ceased to be solvent and that repeated revival efforts had failed. RBI said statutory inspections had revealed deterioration in the bank’s financial position and later serious deficiencies/irregularities, and the bank had no viable revival plan. The bank had earlier been placed under Section 35A directions, but RBI ultimately took the extreme step of cancelling the licence in the interest of depositors. The Registrar of Co-operative Societies, Madhya Pradesh has been asked to initiate winding-up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Khandwa, Madhya Pradesh