Case Brief
The Reserve Bank of India cancelled the banking licence of The Golaghat Urban Co-operative Bank Ltd., Golaghat (Assam), originally granted on October 17, 1997 under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The RBI said the bank had ceased to be solvent, all efforts to revive it had failed, and allowing it to continue banking business would be detrimental to present and future depositors. The release also refers to serious deficiencies in the statutory inspection as on March 31, 2008, deterioration to a precarious financial position in the inspection as on March 31, 2009, a liquidity crunch, restrictions already placed on deposit withdrawals, and an unsatisfactory response to the show-cause notice dated June 08, 2010. The Registrar of Co-operative Societies, Government of Assam was requested to wind up the bank and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location