RBI cancels licence of Ghaziabad Urban Cooperative bank

The Reserve Bank has cancelled the licence of Ghaziabad Urban Cooperative Bank as it had become insolvent. "In view of the fact that Ghaziabad Urban Cooperative Bank, Ghaziabad (UP), had ceased to be solvent and with all efforts to revive it having failed the Reserve Bank of India delivered the order cancelling its licence to the bank on November 16, 2012," RBI said in a notification today.
    
RBI said it has asked the commissioner of Cooperation and Registrar of Cooperative Societies of Uttar Pradesh government to issue an order for winding up the bank as well as appoint a liquidator for the bank.
   
RBI had granted it a licence in April, 1997. Consequent to the cancellation of its licence, Ghaziabad Urban Cooperative Bank is prohibited from carrying on banking business including acceptance and repayment of deposits, it added furthe.