Our Bureau

Mumbai, May 17

The Reserve Bank of India has cancelled the licence of the Baroda Mercantile Co-operative Bank, Vadodara, since it has ceased to be solvent. The Registrar of Co-operative Societies has also been requested to issue an order for winding up the bank and appoint a liquidator, said an RBI release. On liquidation, every depositor would be entitled to repayment of deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation. "The RBI decided to cancel the license of the Baroda Mercantile Co-operative Bank Ltd as a final step after examining all the options for the revival of the bank and in order to protect the interest of the depositors," said the release.

(This article was published in the Business Line print edition dated May 18, 2006)
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