The license of this bank of Maharashtra canceled

The license of this bank of Maharashtra canceled

The Reserve Bank of India canceled the license of a Co-Operative Bank on Thursday. RBI Bank says that the license of The Laxmi Co-Operative Bank Limited based in Solapur (Maharashtra) has been canceled.

what are the reasons?
RBI Bank says that the co-operative bank does not have capital and earning potential. RBI said that Lakshmi Sahakari Bank will close its business after the close of business on September 22, 2022. The co-operative bank has failed to comply with the requirements of the Banking Regulation Act, 1949 and its continuance is prejudicial to the interests of its depositors.

here are the figures
RBI says that as per the data furnished by the co-operative bank, more than 99 percent of the depositors are entitled to get the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). As on September 13, 2022, DICGC has already paid Rs 193.68 crore of the total Sum Assured.

Account holders will be able to withdraw Rs 5 lakh
RBI says that the Cooperative Commissioner and Registrar of Cooperative Societies, Maharashtra have also been requested to issue an order to close the bank and appoint a liquidator for the bank. Upon the closure of the bank, the customer will be entitled to receive a deposit insurance claim amount of up to Rs.5 lakh of his/her deposit from DICGC.

banking business banned
The central bank said that the bank with its current financial position would be unable to make full payments to its existing depositors. Consequent to the cancellation of its license, the Bank is prohibited from carrying on the business of 'Banking' which includes, among other things, acceptance of deposits and repayment of deposits.

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