The Reserve Bank of India (RBI) announced that it had cancelled the license of the Dr Shivajirao Patil Nilangekar Urban Co-operative Bank Ltd. The RBI said that it took this step as the cooperative bank based out of Nilanga, Latur, didn’t have enough capital and earning prospects.
“The continuance of the bank is prejudicial to the interests of its depositors,” the regulator said, adding that the bank doesn’t adhere to the provisions of the Banking Regulation Act, 1949.
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The RBI went on to say that the bank’s financial situation makes it unable to pay its depositors in full. The co-operative bank ceased its operations on Wednesday upon the RBI’s instructions.
Meanwhile, the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has been asked to pass an order to wrap up operations and appoint a liquidator for the institution.
The bank is now restricted from carrying out banking operations, including repayment of deposits or taking in new deposits effective immediately.
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