Case Brief
The Reserve Bank of India cancelled the banking licence of Shri Swami Samarth Urban Co-operative Bank Ltd., Naldurg, Osmanabad, with effect from the close of business on April 30, 2015. RBI said the bank’s financial position was precarious, there was no scope for revival, and the bank had failed to comply with statutory requirements under Sections 11(1) and 22(3)(a) of the Banking Regulation Act, 1949 (AACS). RBI further observed that the bank was unable to pay present and future depositors in full, its affairs were detrimental to depositor interests, and continuation of banking business would harm public interest. Following cancellation, the Registrar of Co-operative Societies, Maharashtra was requested to order winding up and appoint a liquidator, and deposit repayment proceedings under the DICGC Act were to begin, subject to the usual ceiling of Rs.1,00,000 per depositor.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location