The Reserve Bank of India (RBI) has cancelled the licence of Shivam Sahakari Bank Ltd, Ichalkaranji, Kolhapur, Maharashtra.
The licence has been cancelled as the bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of section 11(1) and section 22 (3) (d). It has also failed to comply with the requirements of section 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with section 56 of the Banking Regulation Act, 1949.
Accordingly, the continuance of the bank is prejudicial to the interests of its depositors. The bank with its present financial position would be unable to pay its present depositors in full. Thus, it would adversely affect public interest if the bank is allowed to carry on its banking business any further.
Consequently, the bank ceases to carry on banking business, with effect from the close of business on 29th January, 2021.It is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits as defined in Section 5(b) of the Banking Regulation Act, 1949 with immediate effect.