RBI has also ordered the Cooperative Commissioner and Registrar of Cooperative Societies, Maharashtra to close the bank. At the same time, an order has also been issued to appoint a liquidator.
Bank License Cancelled: The Central Reserve Bank has cancelled the license of another co-operative bank. According to a statement issued by the Reserve Bank, the license of The City Co-operative Bank, Maharashtra has been cancelled due to lack of sufficient capital and earning prospects. Along with this, RBI has also ordered the Cooperative Commissioner and Registrar of Cooperative Societies, Maharashtra to close the bank. At the same time, an order has also been issued to appoint a liquidator.
What did RBI say
According to RBI, the banking operations of the co-operative bank have been closed from June 19, 2024. Talking about the customers, the depositor will be entitled to get insurance from the Deposit Insurance and Credit Guarantee Corporation (DICGC) only up to the limit of Rs 5 lakh. The central Reserve Bank said – According to the data submitted by the bank, about 87 percent of the depositors are entitled to get the full amount of their deposits from DICGC.
As of June 14, 2024, DICGC has already paid a total of Rs 230.99 crore. RBI said that the Mumbai-based cooperative bank does not have adequate capital and earning prospects. The bank will be unable to pay its current with its current financial position. If it is allowed to carry on its banking business further, the public interest will be adversely affected.
Purvanchal Cooperative Bank’s license cancelled
Recently, the Reserve Bank has cancelled the license of Purvanchal Cooperative Bank located in Ghazipur, Uttar Pradesh. Recently, RBI said that Purvanchal Cooperative Bank does not have sufficient capital and earning prospects. RBI said that according to the data of Purvanchal Cooperative Bank, about 99.51 percent of the depositors are entitled to get their entire deposit amount from DICGC. The central bank said that the cooperative bank is unable to make full payment to its current depositors with its current financial position.
