2.7 C
London
Saturday, January 28, 2023

RBI cancels license of Laxmi Co-operative Bank, Solapur

Must read

Memphis police bodycam shows Tire Nichols being beaten

IE 11 is not supported. For an optimal experience, please visit our site in a different browser.Post footage shows Memphis police detaining Nichols...

The 403-page Dungeons & Dragons game system is now licensed under Creative Commons • londonbusinessblog.com

It's now official: Dungeons & Dragons is licensed under the Creative Commons. This makes the popular tabletop role-playing game "freely available for any...

Atomos Secures $16 Million in Funding to Build Tugs in Space • londonbusinessblog.com

You may not have known that space needs tugs, but now you do - and Atomos Space has just completed a $16.2 million Series...

The FBI takes down the Hive ransomware network

The Justice Department announced this week that FBI agents successfully interrupted Hive, a notorious ransomware group, and prevented $130 million in ransom campaigns that...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

The Reserve Bank of India (RBI) on Thursday revoked The Laxmi Co-operative Bank Ltd’s license in Maharashtra‘s Solapur.



As a result, the bank will cease its banking activities with effect from the closure of operations on September 22.

The Commissioner for Cooperation and Registrar of Cooperatives, Maharashtra, has also been requested to issue an order for the dissolution of the bank and to appoint a liquidator for the bank.

Following are the reasons given by the central bank for the revocation of the licence:

– The bank has insufficient capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949.

– The bank has not complied with the requirements of Articles 22(3) (a), 22(3) (b), 22(3)(c), 22(3) (d) and 22(3)(e ) ) read with Section 56 of the Banking Regulation Act, 1949;

– The survival of the bank harms the interests of its depositors;

– The bank with its current financial position would not be able to pay its current depositors in full; and

– The public interest would be harmed if the bank were allowed to continue its banking activities.

Upon liquidation, each depositor would be entitled to receive the amount of deposit insurance claims from his/her deposits up to a monetary ceiling of Rs 5 lakh only from the Deposit insurance and credit guarantee company (DIGC) subject to the provisions of DICGC Act, 1961.

According to the data submitted by the bank, about 99 percent of depositors are entitled to receive the full amount of their deposits from the DICGC. On 13 September, the DICGC has already paid Rs 193.68 crore of total insured deposits under the provisions of Section 18A of the DICGC Act, 1961 on the basis of the willingness received from the bank concerned from the depositors concerned.

ALSO SEE :

Four billionaires debut on rich list after IPOs

Sony WH-1000XM5 headphones review: still the ANC king of premium headphones

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Memphis police bodycam shows Tire Nichols being beaten

IE 11 is not supported. For an optimal experience, please visit our site in a different browser.Post footage shows Memphis police detaining Nichols...

The 403-page Dungeons & Dragons game system is now licensed under Creative Commons • londonbusinessblog.com

It's now official: Dungeons & Dragons is licensed under the Creative Commons. This makes the popular tabletop role-playing game "freely available for any...

Atomos Secures $16 Million in Funding to Build Tugs in Space • londonbusinessblog.com

You may not have known that space needs tugs, but now you do - and Atomos Space has just completed a $16.2 million Series...

The FBI takes down the Hive ransomware network

The Justice Department announced this week that FBI agents successfully interrupted Hive, a notorious ransomware group, and prevented $130 million in ransom campaigns that...

26% of US workers would rather have a root canal than follow these workplace policies

Opinions expressed by londonbusinessblog.com contributors are their own. According to a recent survey conducted by job site Monster, more than one in four (26%) US...