As per RBI notification issued on September 22, 2022, the license of Lakshmi Co-operative was canceled because:
- The bank does not have sufficient capital and earning potential. Thus, it does not comply with the provisions of Section 11(1) and Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949.
- 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 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; And
- Public interest will be adversely affected if the bank is allowed to carry forward its banking business.
“Consequent to the cancellation of its licence, “The Laxmi Co-Operative Bank Ltd., Solapur, Maharashtra” is prohibited from carrying on the business of ‘Banking’ which shall include, inter alia, the acceptance of deposits and repayment of deposits as defined in clause 5(b) read with section 56 of the Banking Regulation Act, 1949 with immediate effect,” the RBI said.
What happens to the deposit?
According to a news report in Economic Times, the data submitted by the bank states that almost 99% of the depositors are entitled to receive the full amount of their deposits. DICGC,
As per RBI press release, “On liquidation, every depositor shall be entitled to receive deposit insurance claim amount up to a monetary limit of Rs.5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporations (DICGC) DICGC Act , 1961. As per the data furnished by the Bank, about 99% of the depositors are entitled to receive the full amount of their deposits from the DICGC. As of September 13, 2022, the DICGC has received from the concerned depositors of the Bank on the basis of their wishes. But under the provisions of Section 18A of the DICGC Act, 1961, 193.68 crores of the Total Sum Assured has already been paid.
As on September 13, 2022, DICGC had already paid Rs 193.68 crore of the total sum assured under Section 18A of the DICGC Act, 1961, based on the wishes of the depositors of the bank.
what is claim settlement,
As per the provisions of DICGC Act, 1961, on cancellation of registration as an insured bank, the Corporation is liable to pay the eligible amount to each depositor subject to the extent of insurance cover based on his deposits and loans. Bank as on cut-off date.
What is the time limit allowed for preparation of the list of claims by the liquidator?
The statutory requirement is that after the appointment of the liquidator, he should submit the claim list in the form and manner prescribed by the DICGC, with the least possible delay and under no circumstances within 3 months from the date of taking over as the liquidator. needed.