Reserve Bank Cancels the Licence of Champavati Urban Co-operative Bank Ltd, Beed (Maharashtra) - ആർബിഐ - Reserve Bank of India
Reserve Bank Cancels the Licence of Champavati Urban Co-operative Bank Ltd, Beed (Maharashtra)
In view of the fact that Champavati Urban Co-operative Bank Ltd, Beed, (Maharashtra) had ceased to be solvent, all efforts to revive it in close consultation with the Government of Maharashtra had failed and the depositors of the bank were being inconvenienced by continued uncertainty, the Reserve Bank of India delivered the order, canceling its licence to the bank on March 20, 2010 at 10.30 a.m. The Registrar of Co-operative Societies, Maharashtra has also been requested to issue an order for winding up of the bank and appoint a Liquidator for the bank. It may be highlighted that on liquidation every depositor is entitled to repayment of his deposits up to a monetary ceiling of Rs.1,00,000/- (Rupees One Lakh only) from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The bank was granted a licence by Reserve Bank on February 05, 1997 to commence banking business. The findings of the statutory inspection conducted with reference to its financial position as on March 31, 2008 revealed large scale irregularities in the operations of the bank. The Board of Directors of the bank was superseded by the Commissioner for Cooperation and Registrar for Cooperative Societies, Pune on January 30, 2009 at the requisition of Reserve Bank of India. Subsequent inspection of the bank conducted with reference to its financial position as on March 31, 2009 revealed that its financial position had deteriorated further. Keeping in view the deteriorating financial position of the bank, a notice was issued to the bank as on November 23, 2009 requiring it to show cause as to why the licence granted to it under section 22 of the Act, on February 05, 1997 to carry on banking business should not be cancelled and the bank be taken into liquidation. The reply dated December 23, 2009 received from the bank to the show cause notice was not satisfactory as the bank did not submit any viable action plan for its revival. In the absence of a viable action plan, the Reserve Bank of India took the extreme measure of canceling licence of the bank in the interest of the bank's depositors. With the cancellation of its licence and commencement of liquidation proceedings, the process of paying the depositors of Champavati Urban Co-operative Bank Ltd, Beed, (Maharashtra), the amount insured as per the DICGC Act will be set in motion, subject to the terms and condition of Deposit Insurance Corporation. Consequent to the cancellation of its licence, Champavati Urban Co-operative Bank Ltd, Beed, (Maharashtra) is prohibited from carrying on 'banking business' as defined in Section 5(b) of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) including acceptance and repayment of deposits. For any clarifications, depositors may approach Smt. M. Yashoda Bai, Deputy General Manager, Urban Banks Department, Reserve Bank of India, Nagpur. Her contact details are as below: Postal Address: Additional Office Building, East High Court Road, Post Box 118, Nagpur 440 001. Telephone Number: (0712) 2538696; Fax Number: (0712) 2552896; Email Ajit Prasad Press Release : 2009-2010/1306 |