The Reserve Bank of India (RBI) on Monday cancelled the licence of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Ichalkaranji, Kolhapur as it does not have adequate capital and earning prospects.
Consequently, the bank ceases to carry on banking business, with effect from the close of business on Dec. 4, 2023, it said in a statement.
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As per the data submitted by the bank, 99.85% of the depositors are entitled to receive the full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC).
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"The bank does not have adequate capital and earning prospects," the RBI said while cancelling its licence.
RBI further said the cooperative bank with its present financial position would be unable to pay its present depositors in full.
The Commissioner for Cooperation and Registrar Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
On liquidation, every depositor would be entitled to receive a deposit insurance claim amount of his/her deposits up to Rs 5 lakh from DICGC.
As of July 24, 2023, DICGC has already paid Rs 41.60 crore of the total insured deposits.
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