Case Brief
The Reserve Bank of India cancelled the licence of Sarjeraodada Naik Shirala Sahakari Bank Ltd., Shirala, Dist. Sangli, Maharashtra, by order dated March 02, 2022. RBI cited inadequate capital and earning prospects, non-compliance with multiple provisions of the Banking Regulation Act, 1949, and concluded that the bank’s continuance would be prejudicial to depositors and public interest. As a result, the bank is prohibited from conducting banking business, including accepting and repaying deposits, with immediate effect. RBI also requested the Maharashtra authorities to issue a winding-up order and appoint a liquidator. DICGC deposit insurance protections were noted for depositors, subject to law.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Shirala, Maharashtra