The Reserve Bank of India has cancelled the licence of Shri Bhadran Mercantile Co-operative Bank Ltd, Bhadran (Gujarat) to carry out banking business.
The Registrar of Co-operative Societies, Gujarat State has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
The bank was granted a licence by Reserve Bank of India on December 11, 1986 to commence banking business. In view of its precarious financial position and with a view to preventing preferential payments and protecting the interest of the depositors, the bank was placed under Operational Instructions with effect from the close of business on October 31, 2006 restricting withdrawal of deposits to `1000/- per depositor.
A Show Cause Notice for cancellation of licence was issued on December 22, 2011. The bank in its reply admitted the irregularities and did not furnish any specific comment on the deficiencies.
The bank did not submit any concrete revival plan or any proposal for merging itself with any strong UCB.
In a press release RBI said that it took the extreme measure of cancelling the licence of the bank in the interest of bank’s depositors.
Consequent to the cancellation of its licence, Shri Bhadran Mercantile Co-operative Bank Ltd, Bhadran (Gujarat) is prohibited from carrying on business of ‘banking’.
For any clarifications, depositors may approach Smt. M. K. Subhashree, Assistant General Manager, Urban Banks Department, Reserve Bank of India, Ahmedabad. Her contact details are as below:
Postal Address: Urban Banks Department, Reserve Bank of India, La Gajjar Chambers, Ashram Road, Ahmedabad -380 009, Telephone Number: (079) 26589338, Fax Number: (079) 26584853