RBI: The Reserve Bank of India (RBI) has canceled the licence of Banaras Merchantile Co-operative Bank, Varanasi in view of its deteriorating financial condition.
RBI:The Reserve Bank of India (RBI) has canceled the licence of Banaras Merchantile Co-operative Bank, Varanasi in view of its deteriorating financial condition. Cancelling the licence, RBI said, “As a result, the bank will stop doing banking business after business hours on July 4, 2024.”
What will happen to people’s money?
The Cooperative Commissioner and Registrar of Cooperative Societies of Uttar Pradesh have also been requested to issue an order to close the bank and appoint a liquidator. The central bank said that as per the data submitted by the bank, 99.98 percent of the depositors are entitled to receive their entire deposit amount from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
On liquidation, every depositor will be entitled to receive a deposit insurance claim amount of up to Rs 5 lakh on his deposits from the DICGC. The RBI said that the cooperative bank does not have adequate capital and earning prospects and its continuation is not in the interest of its depositors.
Rs 4.25 crore paid
The Reserve Bank said, “Due to its current financial position, the bank will be unable to make full payment to its depositors.” DICGC has already paid Rs 4.25 crore out of the total insured deposits under the provisions of the DICGC Act on the basis of wishes received from the concerned depositors of the bank till April 30.
