Vitthal Nagari Sahakari Bank Ltd., Latur, Maharashtra

RBI cancelled the licence of Vitthal Nagari Sahakari Bank Ltd., Latur and moved toward liquidation. The bank was found financially unsound, non-compliant with statutory requirements, and unable to protect depositor interests.

The bank must stop all banking operations immediately and will proceed into liquidation, with a liquidator to be appointed. Depositors will have their claims processed under the DICGC framework, subject to the statutory ceiling of ₹1,00,000 per depositor, while the institution itself ceases to operate as a bank.

• Section 11(1) of the Banking Regulation Act, 1949 (AACS)
• Section 22(3)(a) of the Banking Regulation Act, 1949 (AACS)
• Section 35A of the Banking Regulation Act

+3 more in the case brief

RBI extended its Section 35A directions on Vitthal Nagari Sahakari Bank Ltd., Latur, for another three months. The bank will keep operating under restrictions until further review.

The bank remains in operation but under RBI-imposed restrictions through August 14, 2015, subject to review. Depositors and counterparties should expect continued operational constraints, while the bank may seek modification only if its financial condition improves.

• sub Section (1) of Section 35A of the Banking Regulation Act, 1949, (AACS)

RBI extended its existing restrictions on Vitthal Nagari Sahakari Bank Ltd., Latur, Maharashtra until May 14, 2015. The bank remains under operating constraints, including limits on lending, deposits, payments, and withdrawals.

The bank must continue operating under RBI-imposed restrictions through May 14, 2015 unless modified earlier by the Reserve Bank. Lending, fresh deposit mobilisation, payments, and other core activities remain constrained, and depositors can withdraw only up to Rs 1,000 per account on one occasion during the period. The order affects the bank, its depositors, and its borrowers/counterparties.

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