Case Brief
The Reserve Bank of India cancelled the licence of The Anand Urban Co-operative Bank Ltd., Anand, Gujarat on March 27, 2007. RBI said the bank had ceased to be solvent, revival efforts in consultation with the Government of Gujarat had failed, and the bank's financial position had deteriorated further after special scrutiny. The bank had earlier been placed under Section 35A directions from July 22, 2004 due to a severe liquidity crunch, and a show-cause notice was issued on November 1, 2006. RBI concluded that the bank had no viable revival plan and that cancellation was necessary to protect depositors; it also requested the Registrar of Co-operative Societies, Gujarat to commence winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Anand, Gujarat