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RBI cancels license of Kolkata-based Baranagar Co-operative Bank

The central bank had granted a licence to the co-operative bank on April 15, 1996. It was placed under all inclusive directions from July 30, 2013.

ET Bureau|
Last Updated: Jan 29, 2015, 04.05 PM IST
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The central bank had granted a licence to the co-operative bank on April 15, 1996. It was placed under all inclusive directions from July 30, 2013.
The central bank had granted a licence to the co-operative bank on April 15, 1996. It was placed under all inclusive directions from July 30, 2013.
Kolkata: Reserve Bank of India has cancelled the licence of Kolkata-based Baranagar Co-operative Bank Ltd as the bank turned insolvent and all efforts to revive the bank had failed.

Now, a liquidator will start the winding up process and every depositor will get back up to Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation as per banking norms.

The bank was not in position to pay its present and future depositors in full as and when their claims accrue.

The central bank had granted a licence to the co-operative bank on April 15, 1996. It was placed under all inclusive directions from July 30, 2013. The directions were extended thrice with January 29, 2015 being the last deadline

However, in view of continued deteriorating financial position and absence of fresh capital infusion from West Bengal government, RBI had served a notice for cancellation of licence was issued to the bank on August 20, 2014.

The state government had also agreed to the winding up notice.
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