Vishwakarma Nagari Sahakari Bank Maryadit, Aurangabad (Maharashtra)

RBI cancelled the licence of Vishwakarma Nagari Sahakari Bank Maryadit, Aurangabad (Maharashtra) under Section 22 of the Banking Regulation Act, 1949 after concluding that the bank had ceased to be solvent and that continuation of the bank would be against public interest. The release details repeated statutory inspection findings: defaults in maintenance of CRR and SLR, violations of KYC/AML guidelines, unsecured advances beyond prescribed limits, weak internal control and management, failure to meet CRAR norms, low approved-securities investment, incorrect DTL computation, borrowing against FDRs, and violations of Section 35A operational directions including paying more than stipulated amounts to some depositors and splitting deposit accounts. A show-cause notice had been issued earlier, but the reply was not satisfactory. RBI also requested the Registrar of Co-operative Societies, Maharashtra State to initiate winding up and appoint a liquidator.

The bank must cease banking operations and enter liquidation proceedings. Depositors will be able to claim insured amounts up to the DICGC ceiling, subject to applicable terms and conditions, while the Registrar of Co-operative Societies is expected to initiate winding up and appoint a liquidator. The action affects the bank, its depositors, and the liquidation process; it also bars the bank from accepting deposits or conducting any banking business.