According to Central Bank Reserve Bank of India, the licence of Maharashtra-based Shivam Sahakari Bank has been cancelled as it does not have adequate capital and earning prospects. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. With the cancellation of licence the process of paying the depositors as per the DICGC Act of 1961 will be set in motion.
According to the data submitted by the bank, more than 99% of the depositors are fully insured by Deposit Insurance and Credit Guarantee Corporation. The Shivam Sahakari Bank with its present financial position would be unable to pay its present depositors in full.
RBI cancels licence of Shivam Sahakari Bank RBI cancels licence of Shivam Sahakari Bank