Parmatma Ek Sewak Nagrik Sahakari Bank Ltd., Nagpur, Maharashtra

RBI cancelled the licence of Parmatma Ek Sewak Nagrik Sahakari Bank Ltd., Nagpur, Maharashtra after finding that the bank had ceased to be solvent, revival efforts had failed, and the bank's financial position had further deteriorated in successive inspections (as on March 31, 2006, March 31, 2008, March 31, 2009, and December 31, 2009). RBI had earlier issued Section 35A directions restricting operations and issued a show-cause notice asking why the licence should not be cancelled. In the absence of any viable turnaround proposal and to protect depositors, RBI took the extreme measure of cancelling the licence and requested the Registrar of Co-operative Societies, Maharashtra to initiate winding-up and appoint a liquidator.

The bank can no longer conduct banking business and must move into liquidation. Depositors will be paid subject to the Deposit Insurance Scheme, with repayment up to the statutory ceiling of Rs. 1,00,000 per depositor under DICGC terms and conditions. The winding-up process and liquidation will affect depositors and other stakeholders awaiting resolution.