RBI cancels licence of Vadodara-based Nutan Sahakari Bank

Written by Agencies | Mumbai, November 7: | Updated: Nov 7 2008, 22:44pm hrs
The Reserve Bank said that it has cancelled the licence of Nutan Sahakari Bank of Vadodara.

The action was taken as all efforts to revive the bank in close consultation with the Gujarat Government had failed and depositors were being inconvenienced by the continued uncertainty, a press release issued here stated.

The Registrar of Co-operative Societies, Gujarat, has also been requested to issue an order for winding up the bank and appoint a liquidator for it, the release said.

Consequent to the cancellation of its licence, Nutan Sahakari Bank is prohibited from carrying on 'banking business' as defined in Section 5 (b) of the Banking Regulation Act, 1949 (AACS), including acceptance and repayment of deposits.

On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs one lakh from the Deposit Insurance and Credit Guarantee Corporation under usual terms and conditions, the apex bank said.