Maharashtra co-operative bank licence cancelled, depositors can claim up to Rs 5 lakhs

The Reserve Bank of India on Thursday said it has cancelled the licence of Solapur (Maharashtra) based The Laxmi Co-operative Bank Limited as the lender does not have adequate capital and earning prospects.

On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh

As per the data submitted by the cooperative bank, more than 99 per cent of the depositors are entitled to receive full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC), the RBI said in a statement.

As per the statement, the co-operative bank has failed to comply with the requirements the Banking Regulation Act, 1949 and its continuance is prejudicial to the interests of its depositors.

Consequent to the cancellation of its licence, the bank is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits.

The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, the central bank added.

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