RBI has cancelled the licence of Konkan Prant Sahakari Bank with effect from 1st of October 2013, read a release of the apex bank.
In view of the fact that the Konkan Prant Sahakari Bank based in Mumbai 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, it further said.
The Registrar of Co-operative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
It may be highlighted that on liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rupees one lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions.
The bank was granted a licence by RBI on June 17, 1988 to commence banking business. The major financial indicators of the bank with reference to its financial position as on March 31, 2009, March 31, 2011 and March 31, 2012 give enough proof of its failure.