Chatrapur Co-operative Bank Ltd., Chatrapur, Odisha

The Reserve Bank cancelled the banking licence of Chatrapur Co-operative Bank Ltd., Chatrapur, Odisha after finding that it had ceased to be solvent, attempts to revive it had failed, and continued uncertainty was inconveniencing depositors. The release also records severe deterioration in the bank’s financial condition over several years, including negative net worth, erosion of deposits, very high NPAs, and repeated non-compliance with statutory requirements such as Sections 11(1), 18, 22(3)(a), and 24 of the Banking Regulation Act, 1949 (AACS). The bank had also violated RBI directions under Section 35A, including by accepting fresh deposits, setting off loan amounts against fixed deposits, and allowing refund of share capital in cash. The licence cancellation was ordered because further operation was considered detrimental to the interests of present and future depositors.

The bank must stop all banking business immediately, including acceptance and repayment of deposits. The Registrar of Co-operative Societies has been requested to initiate winding up and appoint a liquidator, and depositors will be paid according to the Deposit Insurance Scheme subject to applicable limits and conditions. Depositors are directly affected by the liquidation process and will receive insured repayment up to the specified ceiling.