Latest News | RBI Cancels Licence of Babaji Date Mahila Sahakari Bank, Yavatmal
Get latest articles and stories on Latest News at LatestLY. The Reserve Bank on Friday said it has cancelled the licence of Babaji Date Mahila Sahakari Bank Limited, Yavatmal, Maharashtra, as the lender does not have adequate capital and earning prospects.
Mumbai, Nov 11 (PTI) The Reserve Bank on Friday said it has cancelled the licence of Babaji Date Mahila Sahakari Bank Limited, Yavatmal, Maharashtra, as the lender does not have adequate capital and earning prospects.
As per the data submitted by the bank, the RBI said about 79 per cent of the depositors are entitled to receive full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC).
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As on October 16, 2022, DICGC has already paid Rs 294.64 crore of the total insured deposits.
Consequent to the cancellation of its licence, Babaji Date Mahila Sahakari Bank Limited has been prohibited from conducting the business of 'banking' which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect.
While announcing cancellation of the licence of Babaji Date Mahila Sahakari Bank with effect from the close of business on Friday (November 11, 2022), it said the bank does not have adequate capital and earning prospects.
"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 RBI said.
On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh from DICGC.
The RBI further said the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the lender.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)