scorecardresearch
Saturday, Dec 03, 2022

RBI cancels licence of Solapur-based Laxmi Co-operative Bank

The central bank has also asked the commissioner for cooperation and registrar of cooperative societies, Maharashtra, to issue an order for winding up the bank and appoint a liquidator for it.

Reserve Bank of India, rate hike, interest rates, RBI rate hikes, Indian economy, Business news, Indian express business news, Indian express, Indian express news, Current AffairsThe RBI order comes into effect from today. (File Photo)

The Reserve Bank of India (RBI) Thursday cancelled the licence of Solapur-based Laxmi Co-operative Bank Limited.

According to the RBI’s order, the bank would cease to carry on its banking businesses from September 22 and the central bank has also asked the commissioner for cooperation and registrar of cooperative societies, Maharashtra, to issue an order for winding up the bank and appoint a liquidator for it.

Listing the reasons for cancelling the bank’s licence, the RBI stated: “The bank does not have adequate capital and earning prospects and as such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) of the Banking Regulation Act, 1949. The continuance of the bank is also 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.”

The RBI’s order added, “On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5,00,000 from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961.”

Subscriber Only Stories
UPSC Essentials| Weekly news express with MCQs : Project GIB, Remittances...Premium
Delhi Confidential: Why CJI Chandrachud says children should be taught as...Premium
Shaped by war: Ukraine artist to showcase work at Kochi-Muziris BiennalePremium
Most drones crossing border originate from Pak Rangers outposts: AgenciesPremium

First published on: 22-09-2022 at 06:37:13 pm
Next Story

Watch: Cheetah jumps onto safari vehicle, man clicks selfie with it; angers netizens

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement
close