Vikrant Shekhawat : Jun 17, 2024, 05:56 PM
Reserve Bank of India: The Reserve Bank of India (RBI), the central bank of India, has canceled the license of Purvanchal Sahakari Bank located in Ghazipur, Uttar Pradesh. The central bank said on Monday that Purvanchal Sahakari Bank does not have sufficient capital and earning prospects. RBI said in the statement that the Cooperative Commissioner of Uttar Pradesh and the Registrar of Cooperative Societies have been asked to issue an order to close the bank and appoint a liquidator.Entitled to get only up to Rs 5 lakhAccording to the news, under the liquidation, every depositor will be entitled to get his deposit amount of up to only Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI said that according to the data of Purvanchal Sahakari Bank, about 99.51 percent of the depositors are entitled to get their entire deposit amount from DICGC.The bank does not have sufficient capital and earning prospectsThe central bank said that the cooperative bank is unable to make full payment to its current depositors with its current financial position. RBI said that the bank does not have sufficient capital and earning prospects. If the bank is allowed to continue banking business in future, it will have an adverse effect on public interest.The Reserve Bank of India keeps reviewing cooperative banks from time to time. RBI takes action against these banks after any major flaw is found. Action has been taken against some banks before this, their banking licenses have been cancelled.