Case Brief
What Happened
The Reserve Bank of India cancelled the licence of The Boriavi People's Co-operative Bank Ltd., Boriavi, Gujarat after concluding that the bank had ceased to be solvent and that revival efforts had failed. RBI also requested the Registrar of Co-operative Societies, Gujarat to initiate winding-up proceedings and appoint a liquidator. The bank had shown severe financial deterioration, including negative capital and net worth, deposit erosion, and non-compliance with statutory provisions under the Banking Regulation Act, 1949 (as applicable to co-operative societies).