9 nuggets on Shri Bhadran Mercantile Co-operative Bank Ltd., Bhadran (Gujarat)
02) Bhadran is named after a 12 year old boy Bhadran Nair from Kerala for his sincere efforts on removing poverty.
03) Shri Bhadran Mercantile Co-operative Bank Ltd, was granted a license by Reserve Bank of India on December 11, 1986 to commence banking business.
04) The initial step to protect the Banks’ Depositors was taken in 2006, with RBI issuing Operational Instructions under Section 36(1) of the Banking Regulation Act, 1949 (AACS) with effect from the close of business on October 31, 2006 restricting withdrawal of deposits to `1000/- per depositor
05) A Show Cause Notice was issued by RBI on 22/12/2011, under Section 22 of the Banking Regulation Act, 1949 (AACS) was issued on December 22, 2011, for cancellation of the Banking License.
06) The bank in its reply dated January 16, 2012 admitted the irregularities/observations and did not furnish any specific comment on the deficiencies detailed in the SCN.
07) As the he bank had not submitted any concrete revival plan or any proposal for merging itself with any strong UCB, RBI took the step of canceling the Licence, to protect the depositors interest.
08) The process of paying the depositors of the Shri Bhadran Mercantile Co-operative Bank Ltd, Bhadran (Gujarat), the amount insured as per the DICGC Act, 1961 has commenced subject to the terms and conditions of the Deposit Insurance Scheme.
09) As a result of cancellation of its licence, Shri Bhadran Mercantile Co-operative Bank Ltd, Bhadran (Gujarat) is prohibited from carrying on business of ‘banking’ as defined in Section 5(b) of the Banking Regulation Act, 1949 (AACS).