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new Delhi. The Reserve Bank of India (RBI) on Wednesday canceled the license of another bank. The central bank canceled the license of Maharashtra-based Mantha Urban Cooperative Bank citing its weak financial position.
RBI said in a statement that with the end of the business of the bank on 16 February 2022, its banking business has been stopped.
License canceled due to
In its statement issued on Wednesday, the central bank said that the Commissioner of Cooperatives and Registrar of Cooperative Societies, Maharashtra have been requested to issue an order to close the bank and appoint a liquidator for the bank. The statement further said that RBI has canceled the license of the bank, as it does not have sufficient capital and no earning prospects.
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RBI said that the continuance of the bank is prejudicial to the interests of its depositors and the bank will be unable to make payments to the depositors with its present financial position. The central bank said that if the bank is allowed to continue banking business even further, it will have an adverse effect on the public interest.
The central bank said that due to the cancellation of the license of Mantha Urban Cooperative Bank, the continuation of that banking business, which includes accepting deposits or paying deposits, has come to a halt.
Know what will happen to your money
RBI further said that every depositor on liquidation shall be entitled to receive a deposit insurance claim from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under the provisions of the DICGC Act, 1961 to the extent of monetary ceiling of Rs 5 lakh. RBI said that as per the data deposited by the bank, more than 99 per cent of the depositors would be entitled to get the full amount of their deposits from DICGC.
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Tags: bank news, business news, Business news in hindi, RBI
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