Licence of Krishna Valley Co-operative Bank Ltd., Kupwad, Sangli

Reserve Bank Cancels the Licence of

Krishna Valley Co-operative Bank Ltd., Kupwad, Sangli (Maharashtra)

The Bank, Krishna Vallery Co-operative Bank Ltd., was granted a licence by the RBI on February 26, 1998 to commence the banking business.

Inspection with reference to the financial position as on March 31, 2003:

An inspection was held with reference to the financial position as on March 31, 2003, to analyse the financial position of the bank and for analyzing the affairs of the bank if any activities of the bank are in a manner detrimental to the interest of the depositors. Through the inspection that was held it was revealed that there was deterioration in the financial position of the bank.

Inspection with reference to the financial position as on March 31, 2011:

Subsequently another statutory inspection of the bank with reference to it financial position as on March 31, 2011 was conducted and it was revealed that most of the violations observed earlier by the regulators still persisted and the financial parameters of the bank has further deteriorated.

Findings of the Inspection:

Serious deficiencies had revealed that the affairs of the bank were being conducted in a manner detrimental to the interest of its depositors

Decision of the RBI and the Registrar of Co-operative Societies, Maharashtra:

Reserve Bank of India took the extreme measure of canceling the licence of the bank in the interest of bank's depositors and The Registrar of Co-operative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

Consequent to the cancellation of its licence, Krishna Valley Co-operative Bank Ltd., Kupwad, Sangli (Maharashtra) is prohibited from carrying on ‘banking business’ as defined in Section 5(b) of the Act.

For further detailed information please follow the below link:

http://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/IEPR1450RB0312.pdf

Reasons for the update: 


The Regulators function towards the benefit of the public and in the path of Law. To protect these interests they even go to the extend of ordering for winding up and liquidating the respective body corporate. Things and facts can never be hidden from the eyes of law for long....