Friday, October 15, 2021
HomeUncategorizedRBI cancels licence of Maharashtra-based bank, depositors to get entire amount

RBI cancels licence of Maharashtra-based bank, depositors to get entire amount


The Reserve Lender of India (RBI) has cancelled the licence of Karnala Nagari Sahakari Financial institution of Maharashtra. For that reason, the bank ceases to carry on banking organization, with impact from the shut of business on August 13, 2021, the RBI explained in an official release.

The central bank even more claimed, “The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an buy for winding up the lender and appoint a liquidator for the bank.”

95% of the depositors will obtain whole quantities of their deposits from Deposit Insurance and Credit Ensure Corporation (DICGC), in accordance to the details submitted by the financial institution.

On liquidation, each depositor would be entitled to obtain deposit insurance plan claim quantity of his/her deposits up to a financial ceiling of 5 lakh from the DICGC topic to the provisions of the DICGC Act, 1961, the RBI reported.

The RBI has cancelled the licence of the bank as:

– The financial institution does not have satisfactory cash and earning potential customers. As these, it does not comply with the provisions of part 11(1) and area 22 (3) (d) study with part 56 of the Banking Regulation Act, 1949.

– The lender has unsuccessful to comply with the specifications of section 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read through with section 56 of the Banking Regulation Act, 1949

– The continuance of the lender is prejudicial to the passions of its depositors

– The financial institution with its existing economical situation would be unable to pay its current depositors in full and

– General public desire would be adversely impacted if the bank is allowed to carry on its banking enterprise any even more.

“Consequent to the cancellation of its licence, Karnala Nagari Sahakari Bank Ltd., Panvel (District – Raigad), Maharashtra is prohibited from conducting the organization of ‘banking’ which includes acceptance of deposits and reimbursement of deposits as outlined in Segment 5(b) examine with Area 56 of the Banking Regulation Act, 1949 with speedy result,” the RBI statement additional.

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