Latest News | RBI Cancels Licence of Vasantdada Nagari Sahakari Bank, Osmanabad
Get latest articles and stories on Latest News at LatestLY. The RBI on Monday said it has cancelled the licence of Vasantdada Nagari Sahakari Bank, Osmanabad, Maharashtra as the bank would be unable to pay its present depositors in full in its current financial position.
Mumbai, Jan 11 (PTI) The RBI on Monday said it has cancelled the licence of Vasantdada Nagari Sahakari Bank, Osmanabad, Maharashtra as the bank would be unable to pay its present depositors in full in its current financial position.
With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of Vasantdada Nagari Sahakari Bank will be set in motion.
On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC), the Reserve Bank of India (RBI) said.
"More than 99 per cent of the depositors of the bank will get full repayment of their deposits from DICGC," it said.
The licence stands cancelled from the close of business on Monday and the bank cannot carry on banking business.
Giving details, it said continuance of Vasantdada Nagari Sahakari Bank is prejudicial to the interests of its depositors.
"...the bank with its present financial position would be unable to pay its present depositors in full," the RBI said.
The Commissioner for Cooperation and Registrar of Cooperative Societies (RCS), Maharashtra has also been requested to issue an order for winding up the bank and appointing a liquidator for the bank, it added.
(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)