Case Brief
The Reserve Bank of India cancelled the banking licence of Champavati Urban Co-operative Bank Ltd., Beed (Maharashtra) on March 20, 2010 at 10:30 a.m. RBI said the bank had ceased to be solvent, revival attempts in consultation with the Government of Maharashtra had failed, and depositors were being inconvenienced by the continued uncertainty. The statutory inspection as of March 31, 2008 revealed large-scale irregularities in the bank's operations, and a subsequent inspection as of March 31, 2009 showed that the financial position had deteriorated further. After a show-cause notice dated November 23, 2009 and an unsatisfactory reply from the bank on December 23, 2009, RBI cancelled the licence in the interest of depositors and requested the Registrar of Co-operative Societies, Maharashtra to order winding up and appoint a liquidator. RBI also noted that depositors would be entitled to repayment up to Rs.1,00,000 through DICGC, subject to applicable terms and conditions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location