Many cooperative banks have recently been failing because of their wrongdoings. The Bhusawal People’s Cooperative Bank of Jalgaon in Maharashtra is one of them. The RBI tried its best to improve its situation but all the efforts of the apex bank came to nought.
Frustrated at being not able to do anything, the RBI has taken the extreme step of stopping the bank from functioning from March this year.
The RBI had received numerous reports from the bank’s depositors about their problems and difficulties and there was a cloud of uncertainty hovering over the bank.
The cancellation of the Bhusawal Cooperative Bank’s licence has already been declared by the RBI through a formal notification.
As per the RBI notification as soon as the process of liquidation begins, customers will be will be repaid upto 1 lakh of their deposits and the Registrar of Cooperative Societies , Maharashtra will oversee the winding up operations.