The RBI has cancelled with immediate effect the licence of the Vasai cooperative bank, Hyderabad in Telangana.
The apex bank took this extreme step because the cooperative bank was not able to carry out necessary obligations and its financial situation was beyond repair.
In the meantime, the RBI has asked the registrar of cooperative societies, Telangana to take steps to put the bank under the control of a liquidator.
Sources say the depositors of the bank will be able to receive an amount of up to Rs 1 lakh from the deposit insurance and credit guarantee corporation. As per the deposit insurance scheme, the process of paying the depositors will soon begin.
