Case Brief
The Reserve Bank of India cancelled the banking licence of Ichalkaranji Urban Co-operative Bank Ltd., Ichalkaranji, Kolhapur, Maharashtra with effect after the close of business on February 11, 2010. RBI said the bank had ceased to be solvent, its condition had continued to deteriorate across successive inspections, and liquidity problems had made its financial position precarious. After issuing Section 35A directions restricting operations and later a show-cause notice, RBI found no viable revival plan or concrete merger proposal. RBI also requested the Registrar of Co-operative Societies, Maharashtra to order winding up and appoint a liquidator. Consequent to cancellation, the bank was prohibited from carrying on banking business, including acceptance and repayment of deposits, and depositors would be entitled to repayment subject to DICGC terms and conditions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location