RBI cancels licence of Pune-based The Seva Vikas Co-op Bank It also stated that the bank's current financial situation would prevent it from paying its current depositors in full. The Seva Vikas Co-operative Bank is prohibited from conducting banking business, which includes, among other things, accepting deposits and repaying deposits, with immediate impact, according to the RBI
The Reserve Bank of India announced on Monday that it has revoked the licence of Pune-based The Seva Vikas Co-operative Bank Ltd because the lender lacks adequate capital and earning prospects. The bank will no longer conduct banking operations as of the close of business on October 10, according to an RBI statement.According to the bank's data, approximately 99 percent of depositors are entitled to receive the full sum of their deposit accounts from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
DICGC had paid Rs 152.36 crore of the total deposit insurance as of September 14.
"The bank does not have adequate capital and earning prospects," the RBI said.
It also stated that the bank's current financial situation would prevent it from paying its current depositors in full. The Seva Vikas Co-operative Bank is prohibited from conducting banking business, which includes, among other things, accepting deposits and repaying deposits, with immediate impact, according to the RBI.
The Maharashtra Commissioner for Cooperation and Registrar of Cooperative Societies has also been asked to issue a decision to wind the bank and assign a liquidator.
Upon liquidation, each depositor would be entitled to a deposit insurance claim amount of up to Rs 5 lakh from DICGC.
This story originally appeared on: India Times - Author:Tax Cognition
