The banking regulator, Reserve Bank of India, has revoked the banking license of Swami Samarth Sahakari Bank Ltd after it became insolvent and could not mange to fulfill the minimum capital requirement of a banking entity.
Cancelling the license of the Maharashtra based bank, Swami Samarth Sahakari Bank, RBI issued a statement which said that the bank had closed its business from December 28, 2012. The bank had turned insolvent despite several efforts made by RBI in close consultation with the Maharashtra government to revive it.
Apart from the central bank, the Registrar of Co-operative Societies of Maharashtra has also been asked to issue an order of winding up of the bank and a liquidator for the bank to initiate the process of winding up.
RBI also said that in cases where banks are liquidated, all those who had deposits in the bank were eligible for receiving repayment on their deposits till the amount of Rs. 1 lakh from the deposit insurance and credit guarantee corporation (DICGC).
The bank received a banking license from RBI to start its business operations on February 13, 1988.