RBI cancels AP co-op bank's licence | india | Hindustan Times
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RBI cancels AP co-op bank's licence

india Updated: Aug 18, 2006 16:58 IST

The Reserve Bank of has cancelled the licence of the Andhra Pradesh-based Kanyaka Parameshwari Mutually Aided Co-operative Urban Bank Ltd following its insolvency and failure of subsequent efforts to revive it.

The apex bank delivered the order cancelling the bank's licence after close of business hours on August 16, a release issued in Mumbai on Friday said.

The Registrar of Co-operative Societies, Andhra Pradesh, has been requested to issue an order to wind up the bank and appoint a liquidator for it, the apex bank stated.

Consequent to the cancellation of its licence, the Kanyaka Parameshwari Bank is prohibited from carrying "banking business" as defined in the Banking Regulation Act, 1949.

The central bank further stated 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).