Case Brief
The Reserve Bank of India cancelled the banking licence of Prantij Nagrik Sahakari Bank Ltd., Prantij, Gujarat, effective after the close of business on June 30, 2009. RBI said the bank had ceased to be solvent, its affairs were being conducted in a manner detrimental to the interests of depositors, and depositors faced continued uncertainty. Earlier statutory inspections indicated that the bank’s financial position was impaired and that it had violated RBI directives and guidelines; later inspections showed further deterioration and continued violations. After an unsatisfactory reply to a show-cause notice dated February 5, 2009, RBI took the extreme measure of cancelling the licence and requested the Registrar of Co-operative Societies, Gujarat to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location