reserve Bank of India announced on Monday that it has canceled the license of Pune-based Sewa Vikas Sahakari Bank Ltd as the lender does not have sufficient capital and earning prospects. The bank will no longer conduct banking operations as of the close of business on October 10, according to a reserve Bank of India Statement.

According to the bank’s data, about 99 percent of the depositors are entitled to get the full amount of their deposit accounts from the bank. Deposit Insurance and Credit Guarantee Corporation (DICGC).

The DICGC had paid Rs 152.36 crore of the total deposit insurance till September 14.

“The bank does not have sufficient capital and earning potential,” the RBI said.

It also said that the current financial position of the bank would prevent it from making full payments to its existing depositors. According to the RBI, Sewa Vikas Sahakari Bank is prohibited from carrying out banking business which, among other things, involves accepting deposits and repaying deposits.

Maharashtra Cooperative Commissioner and Registrar of Co-operative Societies It has also been asked to issue a decision to close the bank and appoint a liquidator.

On liquidation, each depositor will be entitled to deposit insurance claim amount up to Rs.5 lakh from DICGC.