Gujarat Industrial Co-operative Bank Ltd. which was granted a licence by Reserve Bank of India on September 29, 1999 to commence banking business, finally had to shut it’s shutters on 11/11/2011.
Reserve Bank of India delivered the order cancelling its licence to the bank before commencement of business on November 11, 2011. The Central Registrar of Co-operative Societies, New Delhi was also requested to issue an order for winding up the bank and appoint a liquidator for the bank.
As the deposits are insured by DICGC, on liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of `1,00,000/- (Rupees One lakh only) from the Deposit Insurance and Credit Guarantee Corporation (DICGC). Of course, like every offer, there are terms and conditions.
A final effort to save the bank, via a merger proposal from Saraswat Bank Ltd., Mumbai did not materialise. And, few other commercial banks which conducted the due diligence for taking over the assets and liabilities of the UCB expressed their unwillingness for the same.
GICB has 20 branches in 19 cities of Gujarat including Ahmedabad, Surat, Vadodara, Palanpur, Vapi, Selvas, Ankleshwar, Vyara, Bilimora, Mehsana, Jamnagar, Rajkot, Bhavnagar, Bhuj and Junagadh.
The Press Release can be viewed @ http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=25407