RBI cancels Licence of Bangalore Mercantile Co-operative Bank

Mumbai, June 26 (UNI) The Reserve Bank of India(RBI) has cancelled the licence of the Bangalore Mercantile Co-operative Bank Ltd in Karnataka with all efforts by the latter to revive it, had failed and the depositors of the bank were being inconvenienced by the continued uncertainty.

RBI delivered the order, canceling its licence to the bank after the close of business on June 23, 2006, said a RBI press release.

The Registrar of Co-operative Societies, Karnataka has also been requested to issue an order for winding up of the bank and appoint a Liquidator for the bank. It may be highlighted that on liquidation every depositor is entitled to repayment of his deposits up to a monetary ceiling of Rs.1,00,000/- from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

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