Mumbai, Nov 20 (UNI) The Reserve Bank of India has cancelled the licence of Ankleshwar Nagarik Sahakari Bank Limited, Ankleshwar, after closure of business on November 18, as it had ceased to be solvent and all efforts to revive it in close consultation with the Government of Gujarat had failed and depositors of the bank were being inconvenienced by continued uncertainty.
RBI, in a release here, said 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 the bank. On liquidation, every depositor is entitled to repayment of his/her deposits upto a monetary ceiling of Rs one lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions.
The bank was granted a licence by Reserve Bank on October 30, 1995 to commence banking business. The statutory inspection of the bank with reference to its position as on March 31, 2005 had indicated that its financial position was impaired.
Subsequently, as the bank's financial position deteriorated further, it was issued directions under Section 35 A of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) from the close of business of December 3, 2005 restricting its activities.
UNI VK SR NP1605