Banking regulator Reserve Bank of India has announced the cancellation of license to bank for Siddharth Sahakari Bank Ltd of Pune. The apex bank has decided to do so on grounds that the bank ceased to be solvent and despite efforts to revive back, it could not.

The RBI notice in this regard said, "In view of the fact that Siddharth Sahakari Bank Ltd, Pune, Maharashtra had ceased to be solvent, all efforts to revive it in close consultation with the government of Maharashtra had failed and the depositors were being inconvenienced by continued uncertainty, the RBI delivered the order cancelling its licence to the bank before commencement of business on June 14, 2011."

Once the bank's assets get diluted, all depositors would be getting back their money upto a maximum of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Seeing its condition of insolvency, the bank was also suggested to consider merging itself with an urban cooperative bank in sound health. But the bank even failed to do so. Under such extreme situation, the apex bank had to finally issue the notice of cancellation of its banking license.