The Reserve Bank today cancelled the licence of Solapur-based Nagari Audyogik Sahakari Bank Niyamit due to financial insolvency. 

"In view of the fact that Solapur Nagari Audyogik Sahakari Bank Niyamit had ceased to be solvent, all efforts to revive it in close consultation with the government of Maharashtra had failed and the depositors were being inconvenienced by continued uncertainty, RBI delivered the order cancelling its licence to the bank," the apex bank said in a statement. 

It said that the Registrar of Cooperative Societies, Maharashtra, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. 

"It may be highlighted that on liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation under usual terms and conditions," the RBI said. 

Meanwhile, the central bank has imposed penalties between Rs 1 lakh and Rs 5 lakh on four Gujarat-based cooperative sector lenders for violation of various guideline including anti-money laundering norms and customer identification rules. 

The four banks are -- Municipal Cooperative Bank Ahmedabad, Ahmedabad Mercantile Cooperative Bank, Surat People's Cooperative Bank and Shreenath Cooperative Bank, the RBI said in separate statements. PTI