The Central Reserve Bank has canceled the license of another co-operative bank. According to the statement issued by the Reserve Bank, the license of The City Co-operative Bank, Maharashtra has been canceled due to lack of adequate 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 to appoint a liquidator has also been issued.
What did RBI say?
According to RBI, the banking operations of the Co-operative Bank have been closed from June 19, 2024. Talking about customers, the depositor will be entitled to get insurance from Deposit Insurance and Credit Guarantee Corporation (DICGC) only up to a limit of Rs 5 lakh. Central Reserve Bank said- According to the data presented by the bank, about 87 percent of the depositors are entitled to receive the full amount of their deposits from DICGC.
DICGC has already paid a total of Rs 230.99 crore till June 14, 2024. RBI said the Mumbai-based co-operative bank does not have adequate capital and earning prospects. The bank will be unable to pay its dues with its current financial position. Public interest will be adversely affected if it is allowed to carry on its banking business.
License of Purvanchal Cooperative Bank canceled
Recently, the Reserve Bank has canceled the license of Purvanchal Co-operative Bank located in Ghazipur, Uttar Pradesh. Recently RBI said that Purvanchal Cooperative Bank does not have sufficient capital and earning potential. RBI said that as per the data of Purvanchal Cooperative Bank, about 99.51 percent of the depositors are entitled to get their entire deposits from DICGC. The central bank said that the co-operative bank with its current financial position is unable to make full payments to its current depositors.
