RBI Cancels Licence Of Shankarrao Pujari Nutan Nagari Sahakari Bank; What Happens To Clients Money?

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New Delhi: The Reserve Bank of India (RBI) on Monday (December 04, 2023) cancelled the licence of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Ichalkaranji, Kolhapur.

“Consequently, the bank ceases to carry on banking business, with effect from the close of business on December 04, 2023. The Commissioner for Cooperation and Registrar Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank,” RBI mentioned in a launch.

The Reserve Bank cancelled the licence of the financial institution because the latter doesn’t have sufficient capital and incomes prospects. As such, it doesn’t adjust to the provisions of Section 11(1) and Section 22 (3) (d) learn with Section 56 of the Banking Regulation Act, 1949, RBI mentioned.

– THe central financial institution additional added that the financial institution has didn’t adjust to the necessities of Sections 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) learn with Section 56 of the Banking Regulation Act, 1949;

– The continuance of the financial institution is prejudicial to the pursuits of its depositors;

– The financial institution with its current monetary place can be unable to pay its current depositors in full; and

– Public curiosity can be adversely affected if the financial institution is allowed to hold on its banking enterprise any additional.

RBI has prohibited Shankarrao Pujari Nutan Nagari Sahakari Bank Limited from conducting any banking enterprise additional.


“Consequent to the cancellation of its licence, “Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Ichalkaranji, Kolhapur” is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect,” RBI mentioned.

What Happens To Customer’s Money After RBI Cancels License Of Shankarrao Pujari Nutan Nagari Sahakari Bank Ltd?

On liquidation, each depositor can be entitled to obtain deposit insurance coverage declare quantity of his/her deposits as much as a financial ceiling of Rs 5,00,000 (Rupees 5 lakh solely) from Deposit Insurance and Credit Guarantee Corporation (DICGC) topic to the provisions of DICGC Act, 1961. 

As per the information submitted by the financial institution, 99.85% of the depositors are entitled to obtain full quantity of their deposits from DICGC. As on July 24, 2023 DICGC has already paid Rs 41.60 crore of the full insured deposits beneath the provisions of Section 18A of the DICGC Act, 1961 primarily based on the willingness obtained from the involved depositors of the financial institution.



Content Source: zeenews.india.com

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