Case Brief
The Reserve Bank of India cancelled the licence of Nashik Zilla Girna Sahakari Bank Limited, Nashik, Maharashtra, by order dated September 25, 2023. As a result, the bank ceased to carry on banking business from the close of business on September 26, 2023. RBI cited inadequate capital and earning prospects, non-compliance with statutory provisions of the Banking Regulation Act, 1949, prejudice to depositors, inability to pay depositors in full, and adverse public interest considerations. RBI also requested the Commissioner and Registrar of Cooperative, Maharashtra to issue an order for winding up the bank and appoint a liquidator. The release notes that depositors would be entitled to insurance claim amounts up to ₹5 lakh from DICGC, subject to the DICGC Act, 1961, and that DICGC had already paid ₹16.27 crore of insured deposits to eligible depositors.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location