Raichur Zilla Mahila Pattana Sahakara Bank Niyamitha, Raichur (Karnataka)

The RBI cancelled the licence of Raichur Zilla Mahila Pattana Sahakara Bank Niyamitha, Raichur (Karnataka) because the bank had ceased to be solvent, repeated efforts to revive it in consultation with the Government of Karnataka had failed, and continued uncertainty was inconveniencing depositors. The release notes that statutory inspections revealed disquieting features, financial deterioration, irregularities in the functioning of the Board, further deterioration in subsequent inspections, and severe liquidity problems. The bank had earlier been placed under Section 35A directions restricting loans, investments, borrowings, acceptance of fresh deposits, and deposit withdrawals, but the show-cause reply for cancellation of licence did not furnish a viable revival plan. RBI therefore took the extreme measure of cancelling the licence and initiating liquidation, with the Registrar of Co-operative Societies, Karnataka requested to wind up the bank and appoint a liquidator.

The bank can no longer carry on banking business, including accepting or repaying deposits, and liquidation proceedings will follow. Depositors will be paid insured amounts up to Rs.1,00,000 through DICGC, subject to liquidation and claim processing.