Case Brief
The Reserve Bank of India cancelled the licence of Vasantdada Nagari Sahakari Bank Ltd., Osmanabad, Maharashtra, effective from the close of business on January 11, 2021. RBI said the bank had failed to comply with the requirements of Section 11(1) and Section 22(3)(a) to (e) of the Banking Regulation Act, 1949, and that its continuance was prejudicial to the interests of depositors. RBI further noted that the bank's financial position would not permit full repayment to present depositors and requested the Maharashtra Registrar of Cooperative Societies to initiate winding up and appoint a liquidator. As a consequence of the cancellation, the bank was prohibited from carrying on the business of banking, including acceptance and repayment of deposits, and DICGC-backed deposit repayment proceedings would begin.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location