The Registrar of Co-operative Societies, West Bengal has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. The Reserve Bank issued the order in view of the fact that the bank had ceased to be solvent, all efforts to revive had failed and the depositors were being inconvenienced by continued uncertainty.
With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of Baranagar Co-operative Bank Ltd., Kolkata (West Bengal), as per the DICGC Act, 1961 will be set in motion. On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rupees one lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions.
The Reserve Bank cancelled the licence of the bank as,among other things, its operations were being carried out in a manner detrimental to the interests of the present and future depositors and that of the public and in violation of Section 11 and 22(3) of the BR Act.