Case Brief
The Reserve Bank of India cancelled the licence of The Bahadarpur Urban Co-operative Bank Ltd., Bahadarpur (Gujarat), after concluding that the bank had ceased to be solvent and that revival efforts had failed. RBI said the bank's financial position had deteriorated into a precarious condition, it had been placed under directions due to liquidity stress, and it could not pay depositors or present a viable turnaround plan. The Registrar of Co-operative Societies, Gujarat was requested to wind up the bank and appoint a liquidator. Following cancellation, the bank is prohibited from carrying on banking business, including accepting and repaying deposits, and depositors may claim repayment up to the DICGC insurance ceiling subject to applicable terms and conditions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location