In the last five years, 26 cooperative banks have been closed due to Liquidation whereas 42 co-op banks have been closed due to merger or amalgamation. The information was shared by the Minister of State for Finance Bhagwat Karad while giving reply to the query G Cheluvegowda Chandrashekhar, Rajya Sabha member from Karnataka.
The state of Maharashtra listed at first number in which the cooperative banks have been closed due to liquidation. Out of 26 banks 14 are from Maharashtra.
The 13 DCCBs of Kerala and 7 DCCBs of Jharkhand have been merged with the Kerala State Cooperative Bank in 2019-20 and Jharkhand State Cooperative Bank in 2017-18 respectively.
The Minister of State for Finance Bhagwat Karad further added that DICGC, a wholly owned subsidiary of RBI insures bank deposits, such as savings, fixed, current, recurring taken together up to a deposit insurance limit of Rs. 5 lakhs.
With a view to providing a greater measure of protection to depositors, DICGC has increased the deposits insurance cover for banks from Rs. 1 lakh to Rs 5 lakh with effect from February 4, 2020.
Accordingly, if a bank fails/gets liquidated, the DICGC is liable to pay to each depositor through the liquidator, an amount of deposit up to Rs 5 lakh as insurance cover, for both principal and interest amount held by depositor in the same right and same capacity at all the branches of a bank taken together, he underlined.
The assets and liabilities of 34 State Cooperative Banks (StCBs) were of Rs 3,77,338 crore, 352 District Central Cooperative Banks (DCCBs) were of Rs 5,90,358 crore as of 31st March 2021 and that of UCBs as of 31st March 2022 were Rs 6,59,589 crore, informed MoS Bhagwat Karad while replying to another query raised by Neeraj Dangi, MP from Rajasthan.
Besides, as of 31st March 2022, the loans outstanding of StCBs, DCCBs and UCBs were Rs 2,37,735 crore; Rs 3,39,105 crore and Rs 3,12,596 crore respectively. The said Data for StCBs and DCCBs for Mar 2022 is Provisional and unaudited, the reply added.
The highest number of DCCBs is in the state of Uttar Pradesh and the lowest in Himachal Pradesh whereas out of 1510 UCBs, Maximum number is in Maharashtra.
Very nice and informative posts on cooperative Banks. Thank you
Kisi ka paisa 5lack se jyada ho to vo paiso ka kya pablic ko nuksan hoga ya pablic ko wapas milega. Me sahebrao desmukh benk ki BAAT kar raha hu jo Mumbai me he