RBI orders cancellation of license of Shri S K Patil Co-operative Bank

On Monday the Reserve Bank released orders of the canceling of the license of the Shri S K Patil Co-operative Bank, Kurundwad, Kolhapur district of Maharashtra. According to RBI press release the bank has got bankrupt and all efforts of its revival in close consultation with the Maharashtra Government have proved to be fatal moreover the depositors of the bank are also inconvenienced by continued uncertainty.

RBI has asked the registrar of Co-operative Societies, Maharashtra, to issue an order for winding up the bank and appoint a liquidator for the bank.

The press release also stated that as a resultant to the cancellation of its license, the bank is forbidden from carrying on with the `banking business' as defined in Section 5 (b) of the Banking Regulation Act, 1949 (AACS) including acceptance and repayment of deposits.

Release further stated in liquidation conditions every depositor is permitted for repayment of his/her deposits up to a monetary ceiling of Rs 1-lakh from the Deposit Insurance and Credit Guarantee Corporation, under usual terms and conditions.