Case Brief
The Reserve Bank of India cancelled the licence of The Anand People's Co-operative Bank Ltd., Anand, Gujarat, effective October 26, 2005. RBI said the cooperative bank had ceased to be solvent, its financial position had continued to worsen, and the chances of revival were remote after all options for revival were examined. The bank had earlier been placed under directions restricting its operations from August 30, 2002 after being classified as 'sick'. RBI noted erosion of deposits and a negative position in paid-up capital and reserves. The cancellation was described as a final step to protect depositors’ interests, and RBI also requested the Registrar of Cooperative Societies, Gujarat to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location