India, April 16 -- The Reserve Bank of India (RBI), through an order dated April 15, 2025, has cancelled the banking licence of Colour Merchants Co-operative Bank Ltd., Ahmedabad, Gujarat. As a result, the bank will cease all banking operations from the close of business on April 16, 2025. The Registrar of Co-operative Societies, Gujarat, has also been requested to issue an order for the bank's winding up and to appoint a liquidator.
The licence has been cancelled due to the following reasons:
The bank lacks adequate capital and has no viable earning prospects, making it non-compliant with Sections 11(1) and 22(3)(d), read with Section 56 of the Banking Regulation Act, 1949.
The bank has failed to meet the conditions laid out in Sections...