Jaipur: The Reserve Bank has cancelled the licence of Ajmer Urban Cooperative Bank following financial irregularities and heavy debts.
The licence of the bank was cancelled yesterday.
“There are over 20,000 accounts with around Rs 85 crore in savings from the customers,” the bank's Special Auditor Vinod Sharma said today.
He said the bank has the arrangement of Rs 65 crore and is falling short of more than Rs 20 crore to pay to the account holders.
The RBI had restricted transition by the bank in 2011 after several financial irregularities came to light and gave it time for recovery of loans.
Sharma informed that a liquidator will be appointed by the Registrar of Cooperatives department, state government for settlement with the depositors.
Meanwhile, Chief Executive Officer of Rajasthan Urban Co-operative Banks Federation Ltd, M L Sharma said RBI had already restricted transaction by the Ajmer Urban Cooperative Bank.
He said other urban cooperative banks are working as usual.
“All urban cooperative banks are administratively separate banks and are working in their respective areas,” he said.
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