Case Brief
RBI, by order dated June 30, 2016, cancelled the licence of Jijamata Mahila Sahakari Bank Ltd., Satara, Maharashtra to carry on banking business, effective from the close of business on July 4, 2016. The cancellation was based on non-compliance with Sections 11(1) and 18 of the Banking Regulation Act, 1949 (AACS), failure to satisfy Section 22(3)(a)-(e), inability to pay present and future depositors, conduct detrimental to depositor interests, absence of a concrete revival proposal, and no merger proposal despite advice to explore that option. RBI also requested the Registrar of Co-operative Societies, Maharashtra to initiate winding up and appoint a liquidator. Consequent to the cancellation, the bank was prohibited from conducting banking business and deposit repayment under the DICGC framework would begin in liquidation.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location