Case Brief
The Reserve Bank of India cancelled the licence of Colour Merchants Co-operative Bank Ltd., Ahmedabad, Gujarat, by order dated April 15, 2025. RBI cited inadequate capital and earning prospects, non-compliance with Sections 11(1) and 22(3)(a) to 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949, and concluded that the bank’s continuance would be prejudicial to depositors and public interest. Following the cancellation, the bank ceased to carry on banking business from the close of business on April 16, 2025, and the Registrar of Cooperative Societies, Gujarat, was requested to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Ahmedabad, Gujarat