RBI cancels licence of This Bank. Please check Details if You have account here

By News Next Live Last updated Jun 1, 2021 - 12: 36 pm

Pune: The Reserve Bank of India (RBI) has cancelled the licence of Shivajirao Bhosale Sahakari Bank, Pune as the lender does not have adequate capital and earning prospects. “Consequently, the bank ceases to carry on banking business, with effect from the close of business on May 31, 2021.

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The Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank,” RBI said in its release.

RBI lists the reasons for the cancellation of the licence of Shivajirao Bhosale Sahakari Bank, Pune

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1) The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of section 11(1) and section 22 (3) (d) read with section 56 of the Banking Regulation Act, 1949,

2) The bank has failed to comply with the requirements of section 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with section 56 of the Banking Regulation Act, 1949.

3) The continuance of the bank is prejudicial to the interests of its depositors.

4) The bank with its present financial position would be unable to pay its present depositors in full.

5) The public interest would be adversely affected if the bank is allowed to carry on its banking business any further.

As per data submitted by Shivajirao Bhosale Sahakari Bank, more than 98 per cent of the depositors will receive the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC), the RBI said in a release.