Chopda Urban Co-operative Bank Ltd., Jalgaon, Maharashtra

RBI cancelled the banking licence of Chopda Urban Co-operative Bank Ltd., Jalgaon, Maharashtra after concluding that the bank had ceased to be solvent and that efforts to revive it in consultation with the Government of Maharashtra had failed. A statutory inspection found very weak financials, including negative CRAR, negative net worth, high erosion in deposits, gross NPAs of 75.4% of loans and advances, and later further deterioration in the bank's position. The release also cites sanctioning of large loan limits that were routed to societies related to the Chairman/Directors, default in maintenance of SLR, and non-compliance with Sections 11(1), 22(3)(a) & (b) and 24 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI had earlier placed the bank under Section 35A directions, and the Registrar of Co-operative Societies superseded the Board and appointed a Board of Administrators. The show-cause notice was replied to but not satisfactorily; no concrete merger, revival, or restructuring proposal was received, so RBI cancelled the licence in the interest of depositors and initiated liquidation.

The bank can no longer carry on banking business, and liquidation proceedings are to begin. Depositors will be eligible to claim insured amounts up to the DICGC ceiling, subject to the scheme's terms and conditions; other creditors and stakeholders are affected through the winding-up process. The order has immediate operational effect and ends the bank's ability to accept deposits or conduct banking operations.