The RBI has cancelled the license of Vaishali Urban Cooperative Bank in Jaipur, Rajasthan. Registrar of cooperative societies Pawan Kumar Goyal has directed the bank to stop all its banking operations.
Deputy Registrar has been tasked with completing the whole process as desired by the apex bank.
According to Mr Goyal, when the RBI inspection and cooperation dept carried out investigation under article 55 of the cooperative Act, irregular and fraudulent transactions came to light.
Mr Goyal added Deputy Registrar is already calculating the costs of assets and liabilities for settlement of claims. Deputy Registrar has also been asked to take necessary legal action against the erring members of the board.