RBI cancels licence of Shri Mahesh Sahakari Bank
27 Mar 2010
The Reserve Bank of India (RBI) has cancelled the licence of Shri Mahesh Sahakari Bank Ltd, Jalgaon, Maharashtra as the bank ceased to be solvent, an RBI release said on Friday.
RBI said the bank's licence was cancelled after all efforts to revive it in close consultation with the government of Maharashtra failed.
Amidst continuing uncertainty and inconvenience to depositors, RBI said, it decided to cancel the licence to the bank.
RBI delivered the order cancelling its licence to the bank after the close of business on 19 March 2010.
The registrar of co-operative societies in Maharashtra has also been asked to issue an order for winding up the bank and for appointing a liquidator for the bank.
On liquidation, RBI said, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs1,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions.
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