Maharashtra based Vidarbha Urban Coop Bank has come to a closure after making many efforts to revive itself. The Reserve Bank of India has finally cancelled the license of the bank.
The RBI has taken this decision in light of the fact that the bank had become insolvent and had failed in all efforts done in consultation with Maharashtra administration to revive itself.
The apex bank had ordered a statutory inspection of the bank with reference to its financial position as on 31st March 2006. The results suggested that the bank was in a deplorable condition. As a result the RBI took over the bank's board and the bank could not come up with any suitable revival strategy.
The bank had come into operation not long back in 1998 only.
The RBI has directed the Registrar of Co-operative Societies of Maharashtra to bring out an order specifying the closure of the bank and appoint a liquidator for liquidation of its assets.
As per norms, after liquidation each depositor would be receiving maximum of Rs. 1 lakh for his deposits with the bank from the Deposit Insurance and Credit Guarantee Corporation.