Banking and monetary regulator, Reserve Bank of India has declared the cancellation of banking license of Chopda urban cooperative bank, a Maharashtra based cooperative lender.

The reason for its license getting cancelled was the insolvency of the bank followed by uncertainty caused to depositors.

The order for the same was released by RBI on May 24, 2011.

On liquidation of the bank's assets, all customers will be eligible to receive repayment of their money for a maximum limit of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).