Case Brief
The Reserve Bank of India cancelled the licence of Shree Sinnar Vyapari Sahakari Bank Ltd., Sinnar (Maharashtra) with effect after the close of business on December 31, 2009. RBI said the bank had ceased to be solvent, that revival attempts in consultation with the Government of Maharashtra had failed, and that the bank lacked a viable turnaround plan. The release notes that earlier statutory inspection had shown the bank’s financial position to be impaired and that RBI had already placed restrictions on its operations under Section 35A. RBI also requested the Registrar of Co-operative Societies, Maharashtra State to initiate winding up and appoint a liquidator. Following cancellation, the bank is prohibited from carrying on banking business, including acceptance and repayment of deposits, and deposit repayment will proceed subject to DICGC terms and the liquidation process.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location