RBI cancels licence of Coop Bank in Latur district

The Reserve Bank of India (RBI) has cancelled the licence of Bhimashankar Nagari Sahakari Bank Ltd, of Ausa in Latur district of Maharashtra.

In view of the fact that Bhimashankar Nagari Sahakari Bank Ltd 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, the RBI on May 3, 2012 delivered its order dated April 25, 2012 to the bank cancelling its licence to carry out banking business, an RBI statement said.

"The Registrar of Co-operative Societies, Maharashtra State has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank," the statement said.

On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 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 January 27, 1997 to commence banking business.