RBI cancels licence of Baroda Mercantile Co-operative Bank

Mumbai, May 17 (UNI) The Reserve Bank of India (RBI) has cancelled the licence of the Baroda Mercantile Co-operative Bank Ltd located at Vadodara in Gujarat.

RBI has decided to cancel the licence of the Baroda Mercantile Co-operative Bank as a final step after examining all the options for revival of the bank and in order to protect the interest of its depositors, said an RBI release here today. As such, the bank's licence stands cancelled effective yesterday.

Accordingly, 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. It may be mentioned that on liquidation every depositor is entitled to repayment of his deposits up to a monetary ceiling of Rs One lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions.

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

UNI SN ADG SKB1740