Sarjeraodada Naik Shirala Sahakari Bank Ltd, Shirala, Dist. Sangli, Maharashtra

RBI cancelled the licence of Sarjeraodada Naik Shirala Sahakari Bank Ltd., Shirala, Sangli, and the bank must cease banking business immediately. RBI also sought winding-up and liquidation steps.

The bank can no longer conduct banking business or accept/repay deposits from the effective date. Depositors must rely on liquidation and DICGC insurance claims, with insured claims available up to the statutory ceiling of ₹5 lakh per depositor, subject to the DICGC Act. RBI’s request for winding up means the bank enters liquidation proceedings.

• Section 11(1) of the Banking Regulation Act, 1949
• Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949
• Sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949

+2 more in the case brief

RBI extended the existing Section 35A directions on Sarjeraodada Naik Shirala Sahakari Bank Ltd., Shirala, Sangli, until January 03, 2022. The original restrictions continue unchanged, subject to review.

The bank remains subject to the same RBI-imposed operating restrictions until January 03, 2022, unless reviewed earlier. Customers and counterparties remain affected by the continuing directions, and the bank must continue operating within the unchanged regulatory limits.

• Section 35 A
• Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949

RBI placed Sarjeraodada Naik Shirala Sahakari Bank Ltd. under Section 35A directions, restricting lending, investments, liabilities, and other core activities. Depositor withdrawals were also capped at ₹500 per account balance subject to conditions.

The bank must operate under tight RBI-imposed constraints, including no fresh lending, investments, borrowings, or deposit-taking without approval, and depositors can access only limited funds up to the stated cap. The restrictions directly affect customers, counterparties, and the bank's ability to run normal business until RBI reviews or modifies the directions.

• Section 35 A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949