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Reserve Bank of India cancels license of a bank

Mumbai: The apex bank in  the country, the Reserve bank of India (RBI)  has cancelled the licence of a co-operative bank. The RBI has cancelled the license of Bagnan, United Co-operative Bank Ltd, West Bengal. The apex bank took the decision after it founded that the bank doesn’t have adequate capital and earning prospects.

RBI informed that the United Co-operative Bank Ltd would not be able to pay its depositors the full amount of their deposits. RBI has prohibited the bank from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits.

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“The Registrar of Cooperative Societies, West Bengal has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.  The continuance of the bank is prejudicial to the interests of its depositors. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further”, said official statement  issued by RBI.

Depositors will receive the full amount of their deposits under the Deposit Insurance and Credit Guarantee Corporation (DICGC). However, depositors are entitled to receive claim benefits of up to Rs 5 lakh.

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