Case Brief
RBI cancelled the licence of Jamkhed Merchants Co-operative Bank Maryadit, Jamkhed, Dist. Ahmednagar, Maharashtra, effective from the close of business on June 01, 2017. The regulator said the bank had failed to comply with Sections 11(1) read with Section 56 of the Banking Regulation Act, 1949 (AACS) and was operating in violation of Sections 22(3)(a) through 22(3)(e). RBI found that the bank’s operations were detrimental to the interests of present and future depositors and the public, that it was unable to pay its depositors in full as claims accrued, and that there was no scope for revival. RBI also requested the Registrar of Co-operative Societies, Maharashtra, to order winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Jamkhed, Maharashtra