The Reserve Financial institution of India (RBI) has cancelled the licence of Babaji Date Mahila Sahakari Financial institution Ltd, Yavatmal, Maharashtra, because it didn’t have sufficient capital and incomes prospects.
The financial institution will stop to hold on banking enterprise from the shut of enterprise on November 11, RBI stated in a launch on Friday.
Following the cancellation, the financial institution has been prohibited from conducting the enterprise of banking, together with acceptance of deposits and reimbursement of deposits.
“The financial institution with its current monetary place can be unable to pay its current depositors in full and public curiosity can be adversely affected if the financial institution is allowed to hold on its banking enterprise any additional,” the discharge stated.
On liquidation, each depositor can be entitled to obtain deposit insurance coverage declare quantity of his/her deposits as much as a ceiling of Rs 5 lakh from Deposit Insurance coverage and Credit score Assure Company (DICGC), the discharge stated. As per the information submitted by the financial institution, about 79% of the depositors are entitled to obtain the total quantity of their deposits from DICGC, RBI stated.
As on October 16, 2022, DICGC has already paid Rs 294.64 crore of the whole insured deposits.
The RBI has additionally requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra to situation an order for winding up the financial institution and appoint a liquidator for the financial institution.