The Reserve Bank of India (RBI) has cancelled the banking licence of Maharashtra-based Abhinav Sahakari Bank Ltd.
The central bank, in a statement, said the co-operative bank’s licence had been cancelled as it had ceased to be solvent and all efforts to revive it in close consultation with the Government of Maharashtra had failed.
The RBI delivered the order cancelling the bank’s licence as on the close of business on February 7.
The Registrar of Co-operative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator, the central bank said.
The RBI said, on liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 1 lakh only from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions.
Apart from high bad loans and lower than required capital adequacy ratio, the bank had violated several RBI directives, the central bank said.