The Urban Co-operative Bank Ltd., Siddapur, Dist. Uttara Kannada (Karnataka)

RBI cancelled the licence of The Urban Co-operative Bank Ltd., Siddapur, Dist. Uttara Kannada (Karnataka) after concluding that the bank had ceased to be solvent, efforts to revive it in consultation with the Government of Karnataka had failed, and subsequent inspection showed no improvement in financial position. The release says earlier Section 35A directions were issued restricting operations, later modified to cap repayment of deposits at Rs.500 per depositor, and that the bank ultimately had no viable plan of action for revival. The cancellation was taken as a final step in the interests of depositors, and the Commissioner for Co-operation and Registrar of Co-operative Societies, Karnataka was requisitioned to wind up the bank and appoint a liquidator.

The bank can no longer carry on banking business, including acceptance and repayment of deposits. Liquidation will begin, and depositors will be paid subject to the Deposit Insurance Scheme up to the applicable DICGC ceiling and terms.