Skip to Main Content

The General Cooperative Bank Ltd., Ahmedabad

Co-operative bankAhmedabad, Gujarat

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

S5

Published by RBI

9 Jul 2003

Case Brief

The Reserve Bank of India issued requisitions to the Registrar of Cooperative Societies, Gujarat to wind up four urban cooperative banks: The General Cooperative Bank Ltd. (Ahmedabad), The Janata Commercial Cooperative Bank Ltd. (Dholka), Santram Cooperative Bank Ltd. (Nadiad), and The Bhavnagar Welfare Cooperative Bank Ltd. (Bhavnagar). RBI cited non-compliance with sections 11(1), 22(3)(a) and 22(3)(b) of the Banking Regulation Act, 1949 as applicable to cooperative societies, along with the banks' inability to pay their debts. The Registrar of Cooperative Societies has since appointed liquidators for these banks, and they are no longer to accept public deposits or allow withdrawals.

Why RBI Acted

Licensing breachCapital & exposure norms

The Reserve Bank of India issued requisitions under Section 115A(2) of the Gujarat Cooperative Societies Act, 1961 read with Section 13D of the DICGC Act, 1961, asking the Registrar of Cooperative Societies, Gujarat to wind up four urban cooperative banks. The banks were stated to have failed to comply with Sections 11(1), 22(3)(a) and 22(3)(b) of the Banking Regulation Act, 1949 (as applicable to cooperative societies) and were unable to pay their debts. The Registrar has since appointed liquidators for these banks.

Operating Impact

The four banks face winding up and liquidation, which means they will stop normal banking operations and cannot accept deposits or permit withdrawals. Depositors and other creditors are affected by the liquidation process, and the appointed liquidators will handle the closure process.

Regulatory Basis

  • Section 115A(2) of the Gujarat Cooperative Societies Act, 1961
  • Section 13D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961
  • Sections 11(1), 22(3)(a) and 22(3)(b) of the Banking Regulation Act, 1949

Action Facts

Primary Impact
License cancellation
Entities Affected
4
Entity Role
Primary
Entity Type
Co-operative bank

Related Entities

Entities similar to The General Cooperative Bank Ltd., Ahmedabad

˳

  1. Santram Cooperative Bank Ltd., Nadiad

    Co-operative bank · Ahmedabad, Gujarat

    1 shared action

    1 restriction

  2. The Bhavnagar Welfare Cooperative Bank Ltd., Bhavnagar

    Co-operative bank · Ahmedabad, Gujarat

    1 shared action

    1 restriction

  3. The Janata Commercial Cooperative Bank Ltd., Dholka

    Co-operative bank · Ahmedabad, Gujarat

    1 shared action

    1 restriction