Case Brief
The Reserve Bank of India cancelled the banking licence of The Ankleshwar Nagarik Sahakari Bank Ltd., Ankleshwar with effect from the close of business on November 18, 2008. RBI said the bank had ceased to be solvent, earlier revival efforts in consultation with the Government of Gujarat had failed, and the bank did not have a viable turnaround plan. The release also notes that the bank had previously been placed under Section 35A directions restricting its activities, and that its financial position had deteriorated from impaired to precarious on inspection. RBI requested the Registrar of Co-operative Societies, Gujarat to issue winding-up orders and appoint a liquidator. After cancellation, the bank is prohibited from carrying on banking business, including acceptance and repayment of deposits, and depositor repayment will proceed subject to deposit insurance terms and conditions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location