Banking license is precious, declared Nafcub President in the recently held AGM and yet co-op banks one after the other are losing the same. In the latest development RBI has cancelled the licence of Nashik Zilla Girna Sahakari Bank Limited, Nashik, Maharashtra.
“The Reserve Bank of India (RBI), vide order dated September 25, 2023, has cancelled the licence of Nashik Zilla Girna Sahakari Bank Limited, Nashik, Maharashtra. Consequently, the bank ceases to carry on banking business, with effect from the close of business on September 26, 2023. The Commissioner and Registrar of Cooperative, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank”, read a release from the RBI.
RBI cancelled the licence of the bank as the bank does not have adequate capital and earning prospects and the continuance of the bank is prejudicial to the interests of its depositors.
“The bank with its present financial position would be unable to pay its present depositors in full; and Public interest would be adversely affected if the bank is allowed to carry on its banking business any further”, said RBI.
On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ?5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961. As per the data submitted by the bank, 99.92% of the depositors are entitled to receive the full amount of their deposits from DICGC.
DICGC has already paid ?16.27 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961 based on the willingness received from the concerned depositors of the bank.