look news india
India's central bank, the Reserve Bank of India (RBI) has cancelled the licence of Ghazipur-based Purvanchal Sahakari Bank in Uttar Pradesh. The central bank on Monday said that Purvanchal Sahakari Bank does not have adequate capital and earning prospects. The Cooperative Commissioner and Registrar of Cooperative Societies of Uttar Pradesh have been asked to issue an order to close the bank and appoint a liquidator, RBI said in a statement.
Right to get only up to Rs 5 lakh
According to the news, under the liquidation, each depositor will be entitled to get only up to Rs 5 lakh of his deposit from the Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI said that according to the data of Purvanchal Sahakari Bank, about 99.51 percent of the depositors are entitled to get their entire deposit amount from DICGC.
The bank does not have adequate capital and earning prospects
The central bank said that the cooperative bank is unable to pay its depositors in full with its current financial position. RBI said that the bank does not have sufficient capital and earning prospects. If the bank is allowed to continue banking business further, it will adversely affect public interest.
The Reserve Bank of India keeps reviewing cooperative banks from time to time. If any major flaw is found, RBI takes action against these banks. Earlier also action has been taken against some banks, their banking licenses have been cancelled.
