Case Brief
The Reserve Bank of India cancelled the licence of Shri Siddhi Vinayak Nagari Sahakari Bank Ltd., Rasayani, Raigad district, Maharashtra, after concluding that the bank had ceased to be solvent, could not pay present and future depositors, and that its affairs had been conducted detrimentally to depositor interests. RBI noted non-compliance with sections 11(1), 22(3)(a) and 22(3)(b) of the BR Act, 1949 (AACS), persistent deterioration in financial health, and no realistic scope for revival. The bank’s licence cancellation took effect from the close of business on September 25, 2013, and the Registrar of Co-operative Societies, Maharashtra was asked to initiate winding-up and appoint a liquidator. The release also recounts earlier supervisory findings such as high NPAs, accounting manipulations, CRR/SLR defaults, violations of lending norms, creation of a floating charge without RBI approval, and an outstanding fraud case. RBI had earlier imposed all-inclusive directions and penal charges, and had issued a show-cause notice before taking this final action.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location