RBI cancels licence of Maharashtra based co-op bank

anthony (Finance) (7918 Points)

24 June 2011  

The RBI has cancelled the licence of Siddharth Sahakari Bank following failure of efforts to revive the co-operative bank in consultation with the Maharashtra Government. “The Reserve Bank has decided to cancel the licence of Sidharth Sahakari Bank as the bank had ceased to be solvent, all efforts to revive it in close consultation with the Government of Maharashtra had failed and the depositors were being inconvenienced by continued uncertainty,” the apex bank said in a statement. The Registrar of Co-operative Societies has been asked to appoint a liquidator, pursuant to which, every depositor of the bank would be entitled to repayment of his deposits up to a monetary ceiling of Rs 1,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions, the RBI said. - www.thehindubusinessline.com