VADODARA/MUMBAI: The Reserve Bank of India (RBI) on Monday said it has cancelled the licence of Gujarat-based Boriavi People's Co-operative Bank as it has become insolvent and efforts to revive it have failed.
"The RBI has cancelled the licence of the Boriavi People's Co-operative Bank Ltd, Boriavi, in Karia (Kheda) Gujarat. The order of cancellation of the licence was given after the close of business on November 19, 2010," the apex bank said in a statement.
It has requested the registrar of co-operative societies of Gujarat to issue an order for winding up the bank and appoint a liquidator.
"The RBI cancelled the licence as the bank had ceased to be solvent, all efforts to revive it in close consultation with the government of Gujarat had failed and the depositors were being inconvenienced by continued uncertainty," the bank's statement added.
With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of the bank will be set in motion.
"On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions," RBI said.
"The RBI has cancelled the licence of the Boriavi People's Co-operative Bank Ltd, Boriavi, in Karia (Kheda) Gujarat. The order of cancellation of the licence was given after the close of business on November 19, 2010," the apex bank said in a statement.
It has requested the registrar of co-operative societies of Gujarat to issue an order for winding up the bank and appoint a liquidator.
"The RBI cancelled the licence as the bank had ceased to be solvent, all efforts to revive it in close consultation with the government of Gujarat had failed and the depositors were being inconvenienced by continued uncertainty," the bank's statement added.
With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of the bank will be set in motion.
"On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions," RBI said.
courtesy : The Times of India
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