RBI cancels licence of Balasaheb Satbhai Merchants Co-op Bank

Mumbai, Apr 1 (UNI) The Reserve Bank of India(RBI) has cancelled the banking licence of the Ahmednagar-based Balasheb Satbhai Merchants Co-operative Bank after it ceased to be solvent and all efforts to revive it in close consultation with the State Government failed, inconveniencing depositors with continued uncertainty.

The Maharashtra registrar of co-operative societies has also been requested to issue an order for winding up the bank and appoint a liquidator for it, RBI said in an official statement issued here.

The bank was formerly known as the Kopergaon Taluka Merchants Co-operative Bank.

It is pertinent to note that law stipulates that on liquidation, every depositor is entitled to repayment of their deposits upto a monetary ceiling of Rs one lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions.

Earlier, the statutory inspection of the bank on Sep 30, 2000 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, vide orders dated Oct 4, 2004, the statement added.

''The bank does not have a viable plan of action for its revival, ''RBI noted while canceling its licence and set in motion its liquidation proceedings and the process of paying it's depositors according to the terms and conditions of the Deposit Insurance Scheme.

For any clarifications, depositors may approach the General Manager R Ganesan at RBI's south Mumbai office located on the second floor of Garment House. The office's telephone number is (022) 2493 9930-49, direct no is (022) 24928052 and the Fax Number is (022) 2493 5495, RBI added.

UNI