The Reserve Bank of India (RBI) has cancelled the licence of Abhinav Sahakari Bank in Rahuri, Maharashtra on 7 February 2013.
“In view of the fact that Abhinav Sahakari Bank Ltd, Rahuri, Maharashtra had ceased to be solvent and all efforts to revive it in close consultation with the Government of Maharashtra had failed, the Reserve Bank of India delivered the order cancelling its licence to the bank as on the close of business on February 07, 2013,” the RBI said in a notification on 8th March.
The Registrar of Co-operative Societies will issue an order for winding up the bank and appoint a liquidator for the bank. On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs. 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions.
The bank was granted a licence by RBI in 2000 to commence banking business. The statutory inspection of the bank conducted with reference to its financial position as in 2005 revealed that the CRAR of the bank was 4.6% against the regulatory requirement of 9% and its net NPAs were high at 17.8% of net advances, after which operational instructions were imposed on the bank. The financial indicators of the bank continued to deteriorate further as revealed during subsequent inspections.