RBI cancels licence of Ichalkaranji Jiveshwar Sahkari Bank

Mumbai, May 31 (UNI) Reserve Bank of India (RBI) has cancelled the licence of the Ichalkaranji Jiveshwar Sahkari Bank, with efforts to revive it in consultation with the State Government having failed.

The cancellation of the bank's licence is effective from yesterday, a RBI release here today said.

RBI has asked the Registrar of Co-operative Societies, Maharashtra to issue an order for winding up the bank and appoint a liquidator for it. ' Incidentally, on liquidation, every depositor is entitled to repayment of his deposits upto a monetary ceiling of Rs one lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC), under usual terms and conditions.

The bank's board was superseded on September 26, 2003 for mismanagement of affairs. As the bank did not have a viable plan of action for its revival and the chances of its revival were remote, RBI took the extreme measure of cancelling licence of the bank in the interests of depositors.

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