Indira Sahakari Bank Ltd

RBI cancelled the licence of Indira Sahakari Bank Ltd., Dhule, Maharashtra, and initiated winding-up/liquidation steps. The bank had become insolvent and could not present a viable revival plan.

The bank can no longer carry on banking business and will proceed into liquidation/winding-up. Depositors’ claims will be processed under the Deposit Insurance Scheme, subject to applicable terms and conditions, with insured deposits repayable up to the statutory ceiling; the release notes that depositor payouts will be set in motion after cancellation and liquidation begins.

• Section 35 A of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
• Section 5(b) of the Banking Regulation Act, 1949 (AACS)

RBI imposed a Rs. 5 lakh penalty on Indira Sahakari Bank Ltd., Dhule, for breaching credit exposure limits for individual/group borrowers.

The bank must bear the penalty and its compliance record is adversely affected. No operational restriction is described in this release, but the finding signals RBI non-compliance on borrower exposure limits.

• Section 47A (1) (b) read with section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)