The Reserve Bank of India (RBI) on June 18 announced that the license of Millath Co-Operative Bank Ltd., Davangere, Karnataka has been suspended as the bank does not have sufficient capital to conduct business and transactions. After this its operational work has been stopped. RBI has informed the press that it has also appealed to the Registrar of Co-operative Societies of Karnataka to issue an order to close the bank and appoint a liquidator for the bank.
According to RBI, the bank does not have sufficient capital and earning potential. For this reason the bank does not comply with the rules of section 11(1) and section 22(3)(d) read with section 56 of the Banking Regulation Act, 1949. Therefore its license has been cancelled.
The RBI said that the bank’s continuance would be detrimental to the interests of its depositors. RBI in its official statement said that the bank with its current financial position would be unable to make full payments to its existing depositors, and if the bank is allowed to carry on with its banking business, it would be in the best interest of the people. Will not done.
what about the accumulated money
After the closure of its license by RBI, now no one can withdraw, deposit or withdraw money. However, if you have deposits with this co-operative bank, you can, on the winding up of the DICGC Act, 1961, every depositor get deposit insurance from the Deposit Insurance and Credit Guarantee Corporation (DICGC) and deposit insurance of your deposits with the Credit Guarantee Corporation (DICGC). shall be entitled to receive the claim amount.
amount will be given to all
As per the data furnished by the bank, all depositors will receive the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI said that as of May 18, 2022, DICGC has paid Rs 10.38 crore of total Sum Assured under the provisions of Section 18A of the DICGC Act, 1961 on the basis of wills received from the concerned depositors of the bank.