New Delhi [India], December 29 : The Reserve Bank of India (RBI) has cancelled the licence granted to The Botad Peoples Co-operative Bank Ltd, Botad, Gujarat and allowed it to function as a non-banking institution.
RBI today notified that The Botad Peoples Co-operative Bank Ltd, Botad is a non-banking institution following the relevant section of the Banking Regulation Act, 1949.
Accordingly, RBI has cancelled the licence dated February 17, 1998, granted to The Botad Peoples Co-operative Bank Ltd, Botad to carry on banking business in India.
"This makes it obligatory on the part of The Botad Peoples Co-operative Bank Ltd., Botad to stop conducting the business of 'banking' within the meaning of section 5(b) of the Act ibid, including acceptance of deposits from non-members with immediate effect," RBI said in a statement.
Further, The Botad Peoples Co-operative Bank Ltd, Botad shall have to ensure repayment of unpaid and unclaimed deposits of non-members held by it, whenever demanded, even after being notified as a non-banking Institution. RBI cancels the licence granted to The Botad Peoples Co-operative Bank Ltd., Botad, Gujarat
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