New Delhi: The Reserve Bank of India (RBI) has said that it has revoked the license of Vasantdada Nagri Sahakari Bank in Usmanabad, Maharashtra. RBI has said that the bank will not be able to refund the entire money of the depositors as per their current economic situation. Due to this, his licence has been cancelled. RBI has said that with the commencement of the process of cancellation and liquidation of the Co-operative Bank's licence, the process of refund of money to the depositors of Vasantdada Nagri Cooperative Bank will also be initiated.
Rbi further said that after liquidation, depositors from the Deposit Insurance and Debt Guarantee Corporation will be entitled to deposit up to 5 lakh rupees. Thus, more than 99% of the cooperative bank depositors will get the full amount refunded. The co-operative Bank's licence will be considered cancelled on Monday since the business ended. Thereafter, the cooperative bank will not be able to operate.
Earlier, the Reserve Bank of India had cancelled the licence of Subhadra local area Bank of Kolhapur on 23rd December. The central bank then argued that the manner in which the bank was functioning could have harmed the interests of existing and future depositors. However, Subhadra Lok Area Bank has enough cash to repay the depositors ' money.
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