Case Brief
RBI cancelled the licence of The Ajmer Urban Co-operative Bank Ltd., Ajmer (Rajasthan) with effect from the close of business on September 19, 2014. The bank had ceased to be solvent, revival efforts had failed, and RBI said continued uncertainty was inconveniencing depositors. The release says the bank had persistent regulatory violations, worsening financial condition, large NPAs, heavy accumulated losses, negative CRAR, and bleak revival prospects; its response to the show-cause notice was not satisfactory. RBI also requested winding up and appointment of a liquidator, and noted that on liquidation depositors would be entitled to DICGC protection up to Rs 1 lakh.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Ajmer, Rajasthan