Bank Closed: Central bank said that as per data submitted by the bank, 99.98 per cent of depositors are entitled to receive their entire deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Bank Closed: Reserve Bank of India (RBI) has cancelled the license of another cooperative bank. The name of this cooperative bank is Banaras Mercantile Cooperative Bank, Varanasi. RBI has taken this decision in view of the deteriorating financial condition of the bank. With this, this bank will no longer be able to do banking business.
What did RBI say
RBI said that the cooperative bank does not have adequate capital and earning prospects and its continuation is not in the interests of its depositors. The Reserve Bank said – Due to its current financial position, the bank will be unable to make full payment to its depositors. Apart from this, the Cooperative Commissioner of Uttar Pradesh and the Registrar of Cooperative Societies have also been requested to issue an order to close the bank and appoint a liquidator.
What will happen to the customers?
The central bank said that as per the data submitted by the bank, 99.98 percent of the depositors are entitled to receive their entire deposit amount from the Deposit Insurance and Credit Guarantee Corporation (DICGC). On liquidation, each depositor will be entitled to receive a deposit insurance claim amount of up to Rs 5 lakh on his deposit from DICGC. DICGC has already paid Rs 4.25 crore out of the total insured deposits under the provisions of the DICGC Act on the basis of the wishes received from the respective depositors of the bank till April 30.
Registration certificates of many banks returned
Earlier, the Reserve Bank said that nine non-banking financial companies (NBFCs), including Ujjivan Financial Services, have returned their registration certificates (COR) to the central bank. Five of these NBFCs have returned their registration certificates due to being out of the non-banking financial institution business. Their names are Wigfin Holdings, Strip Commodial, Allium Finance, Eternity Finvest and Fino Finance. Apart from these, Allegro Holdings, Temple Trees Impex and Investment and Hem Financial Services have returned their certificates after fulfilling the criteria set for an unregistered core investment company (CIC). CIC does not require registration.
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