Case Brief
The Reserve Bank of India cancelled the licence of The Urban Co-operative Bank Ltd., Dimapur (Nagaland) after determining that the bank had ceased to be solvent and that repeated attempts to revive it had failed. The RBI said the bank's financial parameters had been severely impaired, its deposits were being eroded, and there was no viable plan of action for revival. It also noted that the bank did not respond to the show-cause notice issued on 6 January 2005. Following cancellation, the bank was prohibited from carrying on banking business, including accepting and repaying deposits, and the Registrar of Co-operative Societies, Nagaland was asked to start winding-up proceedings and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Dimapur, Nagaland