Mumbai: The Reserve Bank of India has cancelled the licence of Maharashtra-based Sadhana Co-operative Bank following insolvency of the bank.
Consequent to the cancellation of its licence, Sadhana Cooperative Bank, Maharashtra is prohibited from carrying on banking business, RBI said in a release.
Following liquidation every depositor will receive repayment of his deposit up to a ceiling of Rs100,000 from the Deposit Insurance and Credit Guarantee Corporation, it said.
The central bank has cancelled the licence of the 13-year-old cooperative lender on 22 January. The cooperative bank was granted licence in June 1996.
The licence of the cooperative bank was cancelled as all efforts to revive it in consultation with the state government had failed, it added.