Case Brief
The Reserve Bank of India cancelled the licence of The Dabhoi Nagrik Sahakari Bank Ltd., Dabhoi, Gujarat after concluding that the bank had ceased to be solvent and that all revival efforts had failed. The release says the bank's financial condition had deteriorated, its deposits were getting eroded, and the realisable value of paid-up capital and reserves was negative. Earlier, the RBI had issued Section 35A directions prohibiting acceptance of fresh deposits and restricting repayment of deposits to Rs 500 per depositor. After the cancellation, the Registrar of Co-operative Societies, Gujarat was requested to initiate winding up and appoint a liquidator. The bank is prohibited from carrying on banking business, including accepting and repaying deposits, and insured depositor claims would move through the DICGC process.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location