The Reserve Bank of India on Monday canceled the license of this bank of Maharashtra

The Reserve Bank of India (RBI) on Monday canceled the license of Vasantdada Nagari Sahakari Bank of Osmanabad in Maharashtra as the bank is unable to repay depositors’ money in its current state.

January 12, 2021, 8:33 AM IST

new Delhi. The Reserve Bank of India (RBI) on Monday canceled the license of Vasantdada Nagari Sahakari Bank, located in Osmanabad, Maharashtra. RBI said that the bank will not be able to return the entire money of the present depositors according to its current financial situation. That is why his license is being canceled. The central bank said that with the cancellation of the license and liquidation of the cooperative bank, the process of returning the money of depositors of Vasantdada Nagari Cooperative Bank will also be started.

Deposit up to Rs 5 lakh secured
The Reserve Bank said that the license of the co-operative bank will be considered canceled after the business ends on Monday. After this, the cooperative bank will not be able to operate. Depositors will be eligible to get a deposit of up to five lakh rupees from Deposit Insurance and Credit Guarantee Corporation (DICGC) after liquidation.

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Explain that the Reserve Bank had also ordered the appointment of the bank’s liquidator. The bank says that it is not in the interest of the depositors to keep the Vasantdada City Cooperative Bank operational. In the present situation, the bank will not be able to pay its depositors full money. At present, the central bank has made it clear that even after the license is canceled, 99 percent of the depositors will get their capital back.

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Another bank in Maharashtra had its license canceled
RBI has canceled the license of the troubled ‘Karad Janta Cooperative Bank’ in Karad, Maharashtra. Please tell that before November 2017, the Reserve Bank had imposed some restrictions on Karad Janata Cooperative Bank. RBI has said that after the cancellation of the license, now the bank will be completely closed.