The Urban Co-operative Bank Ltd., Dimapur (Nagaland)

The Reserve Bank cancelled the licence of The Urban Co-operative Bank Ltd., Dimapur (Nagaland) after concluding that the bank had ceased to be solvent, its financial condition had deteriorated severely, and all efforts to revive it in consultation with the Government of Nagaland had failed. The RBI noted that depositors were being inconvenienced by continued uncertainty, there was no viable revival plan, and the bank did not reply to the show-cause notice issued on 6 January 2005. The cancellation was described as a final step taken in the interest of depositors, and the Registrar of Co-operative Societies, Nagaland was requested to initiate winding up and appoint a liquidator.

The bank can no longer operate as a banking institution or accept/repay deposits. Depositors are affected by the winding-up process, and the Registrar of Co-operative Societies, Nagaland is expected to move towards liquidation and appointment of a liquidator. The earlier Section 35A restrictions mentioned in the release were superseded by the licence cancellation.