Case Brief
The Reserve Bank of India cancelled the licence of Abhinav Sahakari Bank Ltd., Rahuri, Maharashtra, with effect from the close of business on February 07, 2013. RBI said the bank had ceased to be solvent, all revival efforts had failed, and continuing the bank’s operations would be prejudicial to depositors and public interest. The release records a long history of deterioration in financial condition, including very low CRAR, high NPAs, erosion of capital and deposits, non-maintenance of CRR/SLR, violations of multiple provisions of the BR Act, 1949, breach of RBI directives and operational instructions, and an unsuccessful show-cause/revival process. RBI requested the Registrar of Co-operative Societies, Maharashtra to initiate winding-up and appoint a liquidator. It also noted that depositors would be entitled to insured repayment up to Rs 1,00,000 from DICGC under the applicable terms.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location