The Reserve Bank of India has cancelled the license of Asia's first Co-operative bank, Anyonya Cooperative Bank Limited. The bank lost its license on Friday and has been asked to shut down all banking operations until any further notification by the regulator.

According to top officials of the 1889 established bank, the event was "unfortunate" and that the apex bank has been to harsh on the bank which deserves a "fair chance to revive its lost glory".

Sources said that RBI had given the bank time till August end to revive itself but the bank's efforts to do so were not supported by some of its board members which ultimately led RBI to set this decision.

According to the sources, these board members intentionally avoided the meetings when decision regarding the fund generation to revive the financial status of the sinking bank was to be taken.