Case Brief
The Reserve Bank of India cancelled the licence of Rahuri Peoples Co-operative Bank Ltd., Rahuri, Maharashtra, after finding that the bank had ceased to be solvent and that revival efforts in consultation with the Government of Maharashtra had failed. RBI said the bank’s financial position was impaired, its operations had already been restricted under Section 35A directions from August 24, 2009, and it had no viable plan to turn around and meet regulatory requirements. Following a show-cause notice and review of the bank’s reply, RBI concluded that cancellation was necessary in the interest of depositors. The Registrar of Co-operative Societies, Maharashtra State was asked to initiate winding up and appoint a liquidator; the bank was also prohibited from carrying on banking business, including accepting and repaying deposits.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location