Color merchants co-operative bank shut down banking business
The Reserve Bank of India (RBI) on Wednesday canceled the license of ‘Color Merchants Co-operative Bank’ in Ahmedabad. RBI said that the Color Merchants Co-operative Bank had neither enough capital nor any possibility of earning. Apart from this, these banks have also failed to follow some necessary rules under the Banking Regulation Act, due to which this big step had to be taken. The Reserve Bank of India said in a statement that the registrar of the Gujarat Co-operative Society has also been requested to close the bank and issue an order to appoint a liquidator for the bank.
98.51 percent customers will get all the money
On the liquidator, each depositor will be entitled to the Insurance Claim Amount on its deposits up to a monetary limit of just Rs 5 lakh from the deposit insurance and loan guarantee corporation (DICGC). The Reserve Bank further said that according to data presented by the co-operative bank, about 98.51 percent of the customers are entitled to receive the entire amount of their deposit from DICGC. By March 31, 2024, DICGC has already paid Rs 13.94 crore to the bank customers.
Color merchants co-operative bank shut down banking business
The Reserve Bank said, “It is harmful to the interests of customers to continue work by Color Merchants Co-operative Bank. With its current financial condition, the bank will be unable to give full money to its customers. ”The Reserve Bank said that if the bank is allowed to continue its banking business even further, it will have a bad effect on the customers. After the license is canceled, this cooperative bank will stop the banking business business on Wednesday (April 16, 2025) with the closure of the business. Banking businesses include cash deposits and representation of deposits, among other things.
With PTI inputs
Latest business news
