Case Brief
The Reserve Bank of India cancelled the licence of Shree Janata Sahakara Bank Ltd., Radhanpur (Gujarat) after concluding that the bank had ceased to be solvent and that attempts to revive it had failed. RBI noted that the bank's financial position had deteriorated further, its net worth had become negative, and merger efforts with another sound bank were unsuccessful. The cancellation followed a show-cause notice issued under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies), which RBI found unsatisfactory after examining the reply and all other revival options. RBI also requested the Registrar of Co-operative Societies, Gujarat to initiate winding up and appoint a liquidator. Consequent to cancellation, the bank is prohibited from carrying on banking business, including acceptance and repayment of deposits.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location