RBI
RBI axes licence of Pune Cooperative Bank
Mumbai: The Reserve Bank of India (RBI) on Tuesday cancelled the licence of The Seva Vikas Co-operative Bank Ltd in Pune.
Consequently, the bank will cease to carry on banking business.
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.
RBI cancelled the licence of the bank as it does not have adequate capital and earning prospects.
The bank has failed to comply with the requirements of the Banking Regulation Act, 1949, the RBI said.
"The continuance of the 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; and the public interest would be adversely affected if the bank is allowed to carry on its banking business any further," it added.
On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
As per the data submitted by the bank, about 99 per cent of the depositors are entitled to receive full amount of their deposits from DICGC.
As on September 14, DICGC has already paid ₹152.36 crore of the total insured deposits.
(With UNI inputs)
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