RBI cancels licence of Maharashtra-based co-operative bank

The Reserve Bank of India has cancelled the licence of Maharashtra-based Sadhana Co-operative Bank following insolvency of the bank. Consequent to the cancellation of its licence, Sadhana Co-operative Bank, Maharashtra is prohibited from carrying on banking business, RBI said in a release.

Following liquidation every depositor will receive repayment of his deposit up to a ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation, it said. The Central bank has cancelled the licence of the 13-year-old cooperative lender on January 22.

The bank was granted licence in June 1996.The licence of the cooperative bank was cancelled as all efforts to revive it in consultation with the state government had failed, it added.