Case Brief
RBI cancelled the licence of The Vasavi Co-operative Urban Bank Ltd., Hyderabad (Telangana) on July 14, 2014, effective from the close of business that day. RBI said the bank had ceased to be solvent, revival efforts had failed, and depositors were being inconvenienced by the ongoing uncertainty. The release also records that inspection findings showed deterioration in the bank’s financial position, inadequate assets to meet outside liabilities, non-compliance with minimum capital and reserves requirements, and poor governance. After an unsatisfactory response to a February 2014 show-cause notice, RBI decided to cancel the licence in the interest of depositors and requested the Registrar of Co-operative Societies to initiate winding-up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location