Case Brief
The Reserve Bank of India cancelled the licence of The Janata Co-operative Bank Ltd., Nadiad, Gujarat on December 9, 2005 after determining that the bank had ceased to be solvent and that attempts to revive it had failed. RBI had earlier placed the bank under Section 35A directions, noted deterioration in its financial condition, and issued a show-cause notice when revival prospects appeared remote. The cancellation was ordered as a final step to protect depositors, and RBI also requested the Registrar of Co-operative Societies, Gujarat to begin winding-up proceedings and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Nadiad, Gujarat