Pune: RBI Cancels License Of Shivajirao Bhosale Sahakari Bank

Pune, 1st June 2021: The license of Pune-based Shivajirao Bhosale Sahakari Bank has been revoked by the Reserve Bank of India (RBI) on May 28th, with an immediate order. The RBI has taken this action based on recommendations made by the Department of Co-operation. They have also pointed out the various financial irregularities as well as the lack of adequate capital, and sources of income. The RBI has ordered the bank to close its operations from May 31st.

“The bank’s license has been revoked due to financial irregularities and other reasons. The process of withdrawal in bank liquidation has been started immediately. He informed that 98% of the depositors of the bank coming under the purview of the Insurance Corporation will get back the amount up to Rs 5 lakh”, said RBI’s Chief General Manager Yogesh Dayal.

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Although the bank’s license is revoked, 98 percent of the bank’s depositors will get their money back with interest up to a maximum of Rs 5 lakh rupees. Depositors have been informed that they will have to submit their claim along with identity cards which are required as per KYC procedure.

Last year, in May 2020, the RBI revoked the license of CKP Co-operative Bank in Mumbai. After the revocation of the bank’s license, their deposits were returned to the depositors through the bank liquidation process.

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