In a rare move the regulator of banks in the country RBI has cancelled the licence of the Sojitra Co-operative Bank based in Anand (Gujarat) and asked it convert itself into a Co-operative Society.
The bank has fulfilled all the conditions stipulated in Section 36(A)(2) of the Act ibid to allow for its conversion into The Sojitra Co-operative Society Ltd, RBI’s notification says.
Accordingly, the bank has ceased to be a “Co-operative bank” as defined in Section 5 (cci) of the Banking Regulation Act, 1949 read with Section 56 of the Act and all the provisions of the said Act applicable to the said co-operative bank shall cease to apply to it, it reads further.
The bank has been prohibited from carrying on banking business in India.