The Boriavi People's Co-operative Bank Ltd., Boriavi, Gujarat

The Reserve Bank cancelled the licence of The Boriavi People's Co-operative Bank Ltd., Boriavi, Gujarat after finding that the bank had ceased to be solvent, all efforts to revive it in consultation with the Government of Gujarat had failed, and depositors were facing continued uncertainty. RBI noted that the bank’s financial position had deteriorated sharply, with negative CRAR and net worth, erosion of deposits, and non-compliance with provisions of Sections 11(1) and 22(3)(a) and (b) of the Banking Regulation Act, 1949 (as applicable to co-operative societies). In the absence of any concrete/viable revival plan or merger proposal, RBI concluded that revival was remote and took the extreme step of cancelling the licence in the interest of depositors.

The bank cannot carry on banking business, including accepting or repaying deposits, and liquidation proceedings are to begin. Depositors’ claims will be processed subject to the Deposit Insurance Scheme, with repayment up to the applicable DICGC ceiling of Rs 1,00,000 per depositor under the usual terms and conditions.