Case Brief
The Reserve Bank of India cancelled the licence of Tandur Mahila Co-operative Urban Bank Ltd., Tandur (Andhra Pradesh), after concluding that the bank was practically defunct and had no scope for revival. The order records failed efforts to achieve regulatory compliance, continued uncertainty for depositors, non-submission of statutory returns since November 2008, inability to produce books of accounts for inspection, high NPAs, accumulated losses, misappropriation of funds, staff involvement in mismanagement, and failure to meet minimum capital and reserve requirements. RBI had issued a show-cause notice on May 03, 2011, but found the reply unsatisfactory and no viable action plan was available. The cancellation was ordered on August 22, 2011, to take effect after close of business on August 30, 2011, and the Registrar of Co-operative Societies was requested to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location