Shivam Sahakari Bank Ltd., Ichalkaranji

RBI cancelled the licence of Shivam Sahakari Bank Ltd, Ichalkaranji, Kolhapur, Maharashtra. The bank must stop banking business and liquidation proceedings are to be initiated.

The bank can no longer carry on banking business, accept deposits, or repay deposits except through the liquidation/insurance process. Depositors will have claims processed under the DICGC framework, with insured amounts payable up to the statutory ceiling of Rs 5 lakh, and winding up proceedings are to follow.

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

+5 more in the case brief

RBI extended the existing directions on Shivam Sahakari Bank Ltd., Ichalkaranji, for three more months. The bank remains under the same restrictions until January 31, 2021, subject to review.

The bank must continue operating under the same RBI-imposed restrictions through January 31, 2021 unless modified earlier on review. Depositors and other stakeholders remain subject to the consequences of the ongoing directions, while the bank’s business activities continue only within the existing limits.

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

RBI extended the existing Section 35A directions on Shivam Sahakari Bank Ltd., Ichalkaranji. The bank will continue to operate under the same restrictions until May 31, 2020, subject to review.

The bank continues to remain subject to RBI-imposed operational restrictions through May 31, 2020, unless modified earlier on review. Depositors and other stakeholders remain affected by the continuing Directions, and the bank must operate within the limits already imposed by the existing order.

• Sub-section (1) of Section 35 A of the Banking Regulation Act, 1949
• Section 56 of the said Act