The Reserve Bank of India (RBI) has cancelled the licence of Shri Chhatrapati Urban Co-operative Bank Ltd., Pimple Nilakh, Pune, Maharashtra. The order was made effective from the close of business on February 07, 2017.
The Registrar of Co-operative Societies, Maharashtra, has also been requested to issue an order for winding up of the bank and appoint a liquidator. The Reserve Bank cancelled the licence of the bank as the bank did not comply with the provisions under Sections 11(1) and 18 of the Banking Regulation (B R) Act, 1949 (AACS).
Its operations were being carried out in a manner detrimental to the interest of the present and future depositors and that of the public and in violation of many sections, read a RBI release.
It further said “The bank was not in a position to pay its present and future depositors in full as and when their claims accrue. The financial position of the bank leaves no scope for its revival. Public interest would be affected adversely if the bank was allowed to carry on banking business, any further.”
With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors as per the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961 will be set in motion.
