New Delhi: The Reserve Bank of India (RBI) has canceled the license of Banaras Mercantile Co-operative Bank, Varanasi. The central bank authority has said that the lender does not have adequate capital to run its business. The apex bank restricted the cooperative bank from taking any fresh deposits from the account holders. The RBI stated, “Due to its current financial position, the bank will be unable to make full payment to its depositors.”
It is to be noted that upon liquidation, every depositor of any bank in the country would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).
As per the data submitted by the Varanasi based co-operative bank, the RBI said, the DICGC has refunded more than Rs 4.25 crore to the account holders. The RBI has also said that 99.99 per cent of the bank’s account holders are entitled to receive full amount of their deposits.
Some time back, the RBI had cancelled license of another co-operative bank based in Karnataka. Citing similar reasons, the central bank had said that Shimsha Sahakara Bank Niyamitha, Maddur (Karnataka) would cease to carry on banking business with effect from on Friday, July 05, 2024. “The bank with its present financial position would be unable to pay its present depositors in full,” it stated.
The apex bank had further added that about 99.96 per cent of the depositors of Shimsha Sahakara Bank are entitled to receive the full amount of their deposits from the DICGC. RBI had said that as on March 31, 2024, DICGC had already paid Rs 11.85 crore of the total insured deposits based on the willingness received from the concerned depositors of the bank.
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The RBI has cancelled Banaras Mercantile Co-operative Bank’s license. The central bank said that 99.99 per cent of the bank’s account holders are entitled to receive full amount of their deposits. Business Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
