look news india
The Reserve Bank of India (RBI) has canceled the Registration Certificate (COR) of Ahmedabad-based Color Merchants Co-operative Bank Limited.
This license has been canceled as the bank does not have enough capital available and is not able to generate bank income. The RBI has ordered the bank to close its business from 16 April 2025.
The RBI further stated in its order that the Bank has also failed to follow the provisions of the Banking Regulation Act. This bank is now against the interest of the bank depositors to continue its business, as the bank is also not in a position to pay its existing deposits completely. If the bank is now allowed to continue its business, it will adversely affect the public interest. Due to cancellation of the bank’s license, the bank will no longer be able to accept the new deposit and repay the deposit amount. The RBI has said that the depositors of this bank will now be eligible for deposit insurance claim amount of Rs 5 lakh. Eligible for refund within the prescribed limit of Rs. 5 lakhs According to the data presented by the Color Merchants Bank, 98.51 percent deposits of the bank are eligible to receive the entire amount of their deposit under the deposit insurance scheme. By 31 March 2024, on the basis of consent received from the concerned depositors under the insurance scheme. An amount of Rs 13.94 crore has been paid.