RBI cancels licence of cooperative bank in Ahmedabad
February 20, 2014
Ahmedabad, 20 February 2014
The Reserve Bank of India on Thursday cancelled the licence of Ahmedabad-based The Municipal Co-operative Bank Ltd. It also penalised two other urban co-operative banks.
The RBI, in a statement, said it has cancelled the licence of The Municipal Co-operative Bank Ltd as the bank had ceased to be solvent.
“All efforts to revive the bank in close consultation with the Government of Gujarat had failed and the depositors were being inconvenienced by continued uncertainty,” the central bank said.
The Registrar of Co-operative Societies (RCS), Gujarat has also been requested to issue an order for winding up the bank and appoint a Liquidator for the bank, it added. On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of ₹1 lakh from the Deposit Insurance and Credit Guarantee Corporation.
Meanwhile, the RBI has imposed a monetary penalty of ₹5 lakh each on Ahmedabad-based Mahila Vikas Co-operative Bank Ltd and Maharashtra-based Amravati Zilla Mahila Sahakari Bank Ltd for violation of directives and diversion of funds respectively.
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