Business Desk, AnyTV, Mumbai
Published by: Gaurav Pandey
Updated Wed, 02 Mar 2022 11:08 PM IST
Summary
RBI has taken this action because the bank did not have enough capital and earning potential.
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With the cancellation of the licence, the Sarjeravdada Nayak Shirla Sahakari Bank Limited has ceased to conduct banking business with effect from the close of business hours on Wednesday, a statement issued by the RBI said.
According to the statement, the Cooperative Commissioner of Maharashtra and the Registrar of Cooperative Societies have also been requested to issue an order to close the bank and appoint a liquidator for the lender.
Every depositor, on liquidation, shall be entitled to receive deposit insurance claim amount from the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a monetary limit of five lakh rupees.
RBI said that as per the data provided by the bank, more than 99 per cent of the depositors are entitled to receive the full amount of their deposits from the DICGC.
The Reserve Bank said that this bank would have been unable to make full payments to its existing depositors due to its current financial position, hence its license has been cancelled. As of January 27, 2022, DICGC had sanctioned Rs 64.70 crore out of the total sum assured on behalf of the concerned depositors of the bank.