Mumbai, Oct 10 (PTI) The Reserve Bank of India on Monday said it has cancelled the licence of Pune-based The Seva Vikas Co-operative Bank Ltd as the lender does not have adequate capital and earning prospects.

The bank ceases to carry on banking business, with effect from the close of business on October 10, the RBI said in a statement.

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As per the data submitted by the bank, it said about 99 per cent of the depositors are entitled to receive full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

As on September 14, DICGC paid Rs 152.36 crore of the total insured deposits.

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"The bank does not have adequate capital and earning prospects," the RBI said. It also noted that the bank with its present financial position would be unable to pay its present depositors in full. The Seva Vikas Co-operative Bank is prohibited from conducting the business of banking which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect, the RBI said.

The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been asked to issue an order for winding up the bank and appoint a liquidator for the bank.

On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh from DICGC.

(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)