Case Brief
The Reserve Bank of India cancelled the licence of Lokseva Sahakari Bank Ltd., Pune, Maharashtra by order dated September 14, 2017, effective from the close of business on September 18, 2017. RBI cited inadequate capital structure and earning prospects, inability to repay present and future depositors in full, detrimental conduct of the affairs of the bank, and the absence of any concrete revival, restructuring, or merger proposal. Following the cancellation, the Registrar of Co-operative Societies, Maharashtra was requested to initiate winding up and appoint a liquidator. RBI also stated that the bank is prohibited from conducting banking business, including accepting and repaying deposits, and that depositor payouts will proceed under the DICGC framework up to the statutory insurance limit.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location