Page 20 - BANKING FINANCE MARCH 2024

RBI cancels licence of Giving reasons for cancellation of the Jivanbhai B Ahir has replaced Faljibhai
licence, RBI said Sumerpur Mercantile Patel on the Vice-Chairman post.
Rajasthan-based Sumerpur Urban Cooperative Bank does not have The Kheti Bank’s election was last held

Mercantile Urban Coop adequate capital and earning pros- in 2021 for five years but according to
pects. the Gujarat State Cooperative Act
Bank
"The bank with its present financial Chairman and Vice-Chairman have to
The Reserve Bank of India (RBI) said it get elected midway–that is after every
has cancelled the licence of Sumerpur position would be unable to pay its 2 and half years.
present depositors in full," it said, add-
Mercantile Urban Cooperative Bank,
ing the continuance of the bank is Talking to Indian Cooperative, Kotecha
Pali (Rajasthan), as the lender does not
have adequate capital and earning prejudicial to the interests of its deposi- said, “I am thankful to the Gujarat
tors. BJP’s top leadership including Union
prospects. The Registrar of Coopera- Home and Cooperation Minister Amit
tive Societies, Rajasthan, has also been Consequent to the cancellation of its li- Shah for putting their seal on my name.
requested to issue an order for wind- cence, Sumerpur Mercantile Urban Co- We will all work together to take the
ing up the bank and appoint a liquida- operative Bank has been prohibited Kheti Bank to newer heights and make
tor, the RBI said in a statement. from conducting the business of 'bank- efforts in fulfilling the vision of our
ing', which includes, among other
On liquidation, every depositor will be Prime Minister Narendra Modi of
entitled to receive deposit insurance things, acceptance of deposits and re- ‘Sahakar Se Samriddhi’.
payment of deposits with immediate
claim amount of his/her deposits up to Dollarbhai Kotecha’s nomination was
effect.
Rs 5 lakh from Deposit Insurance and proposed by Jasabhai Barad and sup-
Credit Guarantee Corporation (DICGC). ported by Brijrajsinh Jadeja whereas
Gujarat Kheti Bank: Jivabhai B Ahir’s name was proposed
"As per the data submitted by the by Ganpatsinh Solanki and supported
bank, 99.13 per cent of the depositors Kotecha re-elected Chair- by Govabhai Desai.
are entitled to receive full amount of man
Gujarat BJP leaders including State BJP
their deposits from DICGC," the RBI Nafcard Chairman Dollar Kotecha has President C R Patel had put a stamp on
said. again been re-elected as the Chairman their names. Gujcomasol Vice-Chairman
As on November 30, 2023, DICGC has of Gujarat State Cooperative Agricul- Bipin Patel (Gotabhai) had sought the
already paid Rs 45.22 crore of the to- ture and Rural Development Bank, party mandate on the name of Chair-
tal insured deposits based on the will- popularly known as Kheti Bank. man and Vice-Chairman in the morning
ingness received from the depositors In an election held on Monday at the and read it before the board, which was
concerned of the bank. bank headquarters at Ahmedabad, unanimously accepted by them later.

18 | 2024 | MARCH | BANKING FINANCE