Case Brief
The Reserve Bank of India cancelled the licence of Shivam Sahakari Bank Ltd, Ichalkaranji, Kolhapur, Maharashtra, by order dated January 28, 2021. RBI cited inadequate capital and earning prospects, non-compliance with statutory licensing provisions under sections 11(1) and 22(3) of the Banking Regulation Act, 1949 read with section 56, and concluded that the bank’s continuance would be prejudicial to depositors and public interest. Following the cancellation, the bank is prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect. RBI also requested the Maharashtra Registrar of Cooperative Societies to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Ichalkaranji, Kolhapur, Maharashtra