Mumbai: The central government has approved the amalgamation of Benares State Bank Ltd with Bank of Baroda. The scheme of amalgamation has come into force from 20 June 2002. A Reserve Bank of India press release said the existing depositors will be paid in accordance with the scheme of amalgamation from 19 July 2002 and onwards on completion of the evaluation of assets by Bank of Baroda, for which a period of one month has been provided.
As per the provisions of the scheme of amalgamation, all the staff security deposits will be paid in full together with accrued interest, and all outside liabilities as on the prescribed date excluding deposits shall be paid or provided in full. Deposits up to Rs 1 lakh will be paid in full by Bank of Baroda or the Deposit Insurance and Credit Guarantee Corporation and the balance of deposits above Rs 1 lakh will be paid pro-rata on the basis of the evaluation of assets of Benares State Bank Ltd.
The branches of Benares State Bank Ltd are functioning as branches of Bank of Baroda from 20 June 2002.