The Reserve Bank of India (RBI) has cancelled the licence of Babaji Date Mahila Sahakari Bank Ltd, Yavatmal, Maharashtra, as it did not have adequate capital and earning prospects.
- Advertisement -
The bank will cease to carry on banking business from the close of business on November 11, RBI said in a release on Friday.
Following the cancellation, the bank has been prohibited from conducting the business of banking, including acceptance of deposits and repayment of deposits.
“The bank with its present financial position would be unable to pay its present depositors in full and public interest would be adversely affected if the bank is allowed to carry on its banking business any further,” the release said.
- Advertisement -
On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a ceiling of Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC), the release said. As per the data submitted by the bank, about 79% of the depositors are entitled to receive the full amount of their deposits from DICGC, RBI said.
As on October 16, 2022, DICGC has already paid Rs 294.64 crore of the total insured deposits.
The RBI has also requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra to issue an order for winding up the bank and appoint a liquidator for the bank.
