The Reserve Bank of India decided to cancel the licence of the Nagrik Sahakari Bank Maryadit, Ratlam, (Madhya Pradesh) as a final step after examining all the options for revival of the bank and in order to protect the interest of the depositors. The bank had been classified as 'sick' based on the findings of the inspection with reference to its financial position as on March 31,2002 and placed under rehabilitation. The bank's financial position, however, continued to worsen and its deposits were getting eroded as realisable value of paid-up capital and reserve was in the negative. The Reserve Bank had, after finding the financial position of Nagrik Sahakari Bank Maryadit, Ratlam, precarious as on June 30, 2003, issued a show cause notice dated February 19, 2004, to the bank asking it to show cause as to why the licence granted to it to conduct banking business should not be cancelled. The bank’s financial position continued to deteriorate and the Reserve Bank of India placed the bank under directions with effect from March 7, 2005, restricting its operations. As the continuance of the bank was untenable, the Reserve Bank of India took the extreme measure of cancelling the licence of the bank in the interest of the bank's depositors. With the cancellation of its licence and after commencement of liquidation proceedings, the process of paying the depositors of Nagrik Sahakari Bank Maryadit, Ratlam, the amount insured as per the DICGC Act, will be set in motion.

Consequent to the cancellation of its licence, the Nagrik Sahakari Bank Maryadit, Ratlam, is prohibited from carrying on ‘banking business’ as defined in Section 5(b) of the Banking Regulation Act, 1949 (AACS) including acceptance and repayment of deposits.

For any clarifications, depositors may approach Shri. M.K.Ray, Deputy General Manager, Urban Banks Department, Reserve Bank of India, Bhopal. His contact details are as below:

Postal Address: Urban Banks Department, Reserve Bank of India, P.B. No. 32, Hoshangabad Road, Bhopal – 462 016.
Telephone Number: (0755) 2555072
Fax Number: (0755) 2554515