Case Brief
RBI cancelled the banking licence of Shri Shivaji Sahakari Bank Ltd., Gadhinglaj, Kolhapur (Maharashtra) with effect from the close of business on June 14, 2014. The regulator said the bank had ceased to be solvent, revival efforts in consultation with the Government of Maharashtra had failed, and continued uncertainty was inconveniencing depositors. The release details severe financial deterioration over multiple inspections, repeated CRR/SLR defaults, erosion of deposits, negative net worth and CRAR, high NPAs, unauthorised lending contrary to RBI instructions, and deficiencies in book-keeping and controls. RBI had earlier placed the bank under all-inclusive directions under Section 35A, later extended them, issued show-cause notices, and ultimately found the responses unsatisfactory, leading to licence cancellation and liquidation proceedings.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location