RBI has canceled the license of Karnala Nagari Sahakari Bank of Maharashtra.
New Delhi. The Reserve Bank of India (RBI) said on August 13 that it has canceled the license of Karnala Nagari Sahakari Bank of Maharashtra. According to RBI, the bank does not have sufficient capital and earning potential and has failed to comply with various sections of the Banking Regulation Act, 1949.
“The bank will cease to do banking business with effect from the close of business on August 13, 2021,” the central bank said in a statement. “The Commissioner of Co-operatives and Registrar of Co-operative Societies, Maharashtra have also been requested to issue an order to close the bank and appoint a liquidator for the bank,” the Reserve Bank said.
98 per cent of the customers will get the full money back The
Reserve Bank said that according to the data submitted by the bank, 95 per cent of the depositors will get the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
The central bank said that the continuance of the bank was prejudicial to the interests of its depositors and the bank would be unable to make full payments to its existing depositors with its current financial position. It further said that if the bank is allowed to carry forward its banking business, it will have an impact on public interest.
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