Case Brief
The Reserve Bank of India cancelled the banking licence of The Surat Mahila Nagrik Sahakari Bank Ltd., Surat, Gujarat, after concluding that the bank had ceased to be solvent and that its affairs were being conducted in a manner detrimental to the interests of depositors. RBI said the bank’s financial position was impaired in the March 31, 2008 statutory inspection and deteriorated further in the March 31, 2009 inspection. After a show-cause notice dated July 21, 2009 was issued and the bank’s reply was found unsatisfactory, RBI took the extreme step of cancelling the licence after close of business on October 20, 2009. RBI also requested the Registrar of Co-operative Societies, Gujarat to commence winding-up proceedings and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location