Case Brief
The Reserve Bank of India cancelled the banking licence of Yashwant Sahakari Bank Limited, Miraj, Sangli, Maharashtra, after finding that the bank had ceased to be solvent and that all revival efforts had failed. RBI noted that statutory inspections showed a worsening financial position, the bank had been placed under Section 35A all-inclusive directions with a withdrawal cap of Rs. 1,000, and its response to the show-cause notice was unsatisfactory. Since there was no concrete plan for revival or merger and no possibility of recovery, RBI withdrew the bank's ability to carry on banking business and requested the Registrar of Co-operative Societies, Maharashtra to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Miraj, Maharashtra