Case Brief
The Reserve Bank of India cancelled the licence of The Rajkot Mahila Nagrik Sahakari Bank Ltd., Rajkot, Gujarat, on January 31, 2007. RBI said the bank had ceased to be solvent, its financial condition had deteriorated, and efforts to revive it in consultation with the Government of Gujarat had failed. The bank had previously been placed under Section 35A directions from October 27, 2006 due to severe liquidity crunch. RBI also noted that the bank lacked a viable revival plan and therefore cancelled the licence as a final measure to protect depositors. The Registrar of Co-operative Societies, Gujarat was requested to initiate winding up and appoint a liquidator; post-cancellation, the bank was prohibited from carrying on banking business, including acceptance and repayment of deposits.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location