Reserve Bank of India, the banking regulator has taken away the license from Gujarat based Boriavi Cooperative Bank on grounds of the bank becoming insolvent despite measures for its revival.
"The RBI has cancelled the licence of the Boriavi People's Co-operative Bank Ltd, Boriavi, in Karia (Kheda) Gujarat. The order of cancellation of the licence was given after the close of business on November 19, 2010," RBI said.
The registrar of cooperative societies has been indicated to come up with an order for winding up of the bank and also appoint a liquidator.
"The RBI cancelled the licence as the bank had ceased to be solvent, all efforts to revive it in close consultation with the government of Gujarat had failed and the depositors were being inconvenienced by continued uncertainty," added RBI.
"On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions," RBI said.