Case Brief
Reserve Bank of India cancelled the licence of Siddharth Sahakari Bank Ltd., Pune, Maharashtra, effective before commencement of business on June 14, 2011. RBI said the bank had ceased to be solvent, revival attempts in consultation with the Government of Maharashtra had failed, and depositors were facing continued uncertainty. The release records sharp deterioration in the bank’s financial condition, negative CRAR and net worth, erosion in deposits, default in CRR/SLR maintenance, severe liquidity problems, and statutory non-compliance. A show-cause notice was issued on April 6, 2011; the bank’s reply was not found satisfactory and no viable merger proposal was received. RBI also requested the Registrar of Co-operative Societies, Maharashtra to initiate winding up and appoint a liquidator. Upon liquidation, depositor repayment is subject to the DICGC ceiling and usual terms.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location