reserve Bank of India said on Thursday that he has canceled the license of Shree Anand Sahakari Bank, chinchwad, Pune as the lender does not have sufficient capital and cannot make full payments to its existing depositors. The Bank ceases to conduct banking business, with effect from the close of business on Thursday (July 7, 2022) reserve Bank of India (RBI) said in a statement.

Co-operative Commissioner and Registrar of Co-operative Societies, Maharashtra It has been asked to issue an order to close the bank and appoint a liquidator for the bank.

As per the data furnished by the bank, over 99 per cent of the depositors are entitled to receive the full amount of their deposits. Deposit Insurance and Credit Guarantee Corporation ,DICGC), RBI added.

“Consequent to the cancellation of its license, ‘Shri Anand Sahakari’ bank ltd‘Chinchwad, Pune’ is prohibited from carrying on banking business, which includes, among other things, acceptance of deposits and repayment of deposits … with immediate effect,” the central bank said.

Explaining the reason for canceling the licence, RBI said that the bank does not have sufficient capital and earning potential, and hence does not comply with its provisions. banking regulation act1949.

Also, the bank will be unable to make full payments to its existing depositors with their current financial position.

“If the bank is allowed to carry on with its banking business, public interest will be adversely affected,” the RBI said.

Upon liquidation, each depositor shall be entitled to receive a deposit insurance claim amount up to Rs.5 lakh of his/her deposit from DICGC.

RBI said that as of May 18, 2022, DICGC has already paid Rs 9.42 crore of the total Sum Assured.