RBI canceled the license of Mumbai based ‘The Kapol Co-operative Bank’


RBI canceled the license of Mumbai based 'The Kapol Co-operative Bank'

RBI said it has canceled the license of The Kapol Co-operative Bank Limited. (Representative)

Mumbai:

The RBI on Monday said it has canceled the license of Mumbai-based The Kapol Co-operative Bank Ltd as the lender does not have adequate capital and earnings prospects.

As a result of the cancellation of the licence, the Co-operative Bank is prohibited from carrying on the business of ‘banking’, which includes, inter alia, accepting deposits and repayment of deposits, with immediate effect, the Reserve Bank said in a statement.

It said that the Additional Secretary of the Ministry of Co-operation and the Central Registrar of Co-operative Societies have also been requested to issue an order to close the bank and appoint a liquidator for the bank.

Upon liquidation, the RBI said every depositor will be entitled to receive the deposit insurance claim amount of his deposits up to a monetary limit of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

About 96.09 per cent of depositors are entitled to receive the full amount of their deposits from DICGC.

Giving details, the RBI said the bank does not have adequate capital and earning prospects and its continuation is detrimental to the interests of its depositors.

“The bank, with its current financial position, will be unable to make full payments to its current depositors,” the RBI said.

As of July 24, 2023, DICGC has already paid Rs 230.16 crore of total insured deposits based on the willingness received from the respective depositors of the bank.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Leave a Comment

“The Untold Story: Yung Miami’s Response to Jimmy Butler’s Advances During an NBA Playoff Game” “Unveiling the Secrets: 15 Astonishing Facts About the PGA Championship”