The Bank will cease to do banking business with effect from the close of business on September 22, 2022. The bank will also be closed and a liquidator will be appointed for the bank. On liquidation, the depositors will receive an insurance claim of up to Rs 5 lakh. The data furnished by the bank shows that up to 99 per cent of the depositors will receive the full amount.
“Bank does not have enough capital and earning potential” reserve Bank of India said in a release. “The continuance of the bank is prejudicial to the interests of its depositors”
the bank will be unable to make full payments to its existing depositors with its current financial position; RBI said that public interest will be adversely affected if the bank is allowed to carry on with its banking business.
Consequent upon the cancellation of its licence, “The Laxmi Co-Operative Bank Ltd., Solapur, Maharashtra” is prohibited from carrying on the business of ‘Banking’ which shall, inter alia, include acceptance of deposits and repayment of deposits with immediate effect. is included.
On liquidation, each depositor shall be entitled to receive the deposit insurance claim amount of his deposits up to a monetary limit of ₹ 5,00,000/- (Rupees five lakh only). Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961. As per the data furnished by the bank, around 99% of the depositors are entitled to receive the full amount of their deposits from DICGC.
As on September 13, 2022, DICGC has already paid ₹193.68 crore of the total insured deposits under the provisions of section 18A of the DICGC Act, 1961 based on the request received from the concerned depositors of the bank.
Reserve Bank The license of the bank was canceled as it had not complied with the provisions of section 11(1) and section 22(3)(d) read with section 56. banking regulation act1949. The bank has failed to comply with the requirements of sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3). (e) read with section 56 of the Banking Regulation Act, 1949, the RBI release said.