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RBI Cancels Banking License Of This Cooperative Bank

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On December 8, another bank meted an end after the RBI cancelled the banking licence of Maharashtra based bank-The Karad Janata Sahakari Bank Ltd, Karad, Maharashtra.

The bank was under all inclusive directions since November 7, 2017. Also, the request has been placed with the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, for issuing an order to close the bank and appoint a liquidator for the bank, the RBI said.

RBI Cancels Banking License Of This Cooperative Bank
 

And on liquidation, each of the depositor shall be receiving the repayment up to ceiling as prescribed as part of the the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions i.e. of Rs. 5 lakh.

Explaining the regulatory action, the RBI said the cooperative bank does not have adequate capital and earning prospects. "As such, it does not comply with the provisions of section 11(1) and section 22 (3) (d) read with section 56 of the Banking Regulation Act, 1949," the RBI said.

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Read more about: rbi banking
Story first published: Wednesday, December 9, 2020, 8:19 [IST]
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