Case Brief
The Reserve Bank of India cancelled the licence of Shri Mahesh Sahakari Bank Ltd., Jalgaon, Maharashtra after finding that the bank had ceased to be solvent and that efforts to revive it in consultation with the Government of Maharashtra had failed. RBI noted that the bank’s financial position had deteriorated further in statutory inspections, no viable revival plan or merger proposal had been submitted, and the situation had become precarious. The Registrar of Co-operative Societies, Maharashtra was requested to initiate winding up and appoint a liquidator. RBI also noted that, consequent to cancellation, the bank is prohibited from carrying on banking business, including acceptance and repayment of deposits.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Jalgaon, Maharashtra