Reserve Bank Cancels the Licence of Ghaziabad Urban Co-operative Bank Ltd., Ghaziabad (UP)

Case Brief

The Reserve Bank of India cancelled the licence of Ghaziabad Urban Co-operative Bank Ltd., Ghaziabad (UP) under section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). RBI said the bank had become insolvent, revival efforts had failed, and continued operation would inconvenience and harm depositors. The release describes multiple statutory inspections showing severe net-worth erosion and deposit erosion, continued non-compliance with sections 11(1), 18, 24 and 22(3)(a), violation of section 22(3)(b), and repeated defaults in SLR and CRR maintenance. RBI also noted that the advances portfolio had almost fully turned NPA and that the bank had earlier been placed under section 35A directions restricting fresh deposits and allowing limited withdrawals. Following cancellation, the RBI requested the Uttar Pradesh Registrar of Co-operative Societies to order winding up and appoint a liquidator.