Case Brief
The Reserve Bank of India cancelled the licence of Parmatma Ek Sewak Nagrik Sahakari Bank Ltd., Nagpur, Maharashtra after concluding that the bank had ceased to be solvent and that its financial position had deteriorated further over multiple statutory inspections. RBI had previously issued Section 35A directions restricting operations and also issued a show-cause notice seeking to know why the licence should not be cancelled. As no viable proposal for revival existed, 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. The bank is consequently prohibited from carrying on banking business, including acceptance and repayment of deposits.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location