Case Brief
The Reserve Bank of India cancelled the licence of Chadchan Shree Sangameshwar Urban Co-operative Bank Ltd., Chadchan (Karnataka), after concluding that the bank had ceased to be solvent and that efforts to revive it in consultation with the Government of Karnataka had failed. RBI had earlier placed the bank under restrictions, including Section 35A directions barring fresh deposits, borrowings, investments, and loans/advances, along with a withdrawal cap. After inspections revealed further deterioration and the show-cause reply did not present a viable revival plan, the RBI took the extreme step of cancelling the licence after the close of business on February 13, 2010. The Registrar of Co-operative Societies, Karnataka was asked to initiate winding-up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location