Case Brief
RBI cancelled the banking licence of Rajiv Gandhi Sahakari Bank Ltd., Latur (Maharashtra) after concluding that the bank could not pay its present and future depositors and that its financial condition left no scope for revival. The release cites repeated statutory inspections showing worsening net worth, CRAR, NPAs, losses and deposit erosion, along with non-compliance with provisions of the Banking Regulation Act, 1949 (AACS). RBI also noted that no satisfactory reply or concrete merger/revival proposal was received. Consequent to the cancellation, RBI requested the Registrar of Co-operative Societies, Pune to issue winding-up orders and appoint a liquidator, and deposit insurance payments up to the statutory ceiling were to be set in motion.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location