The Reserve Bank of India has cancelled the license of Bagnan, United Co-operative Bank Ltd, West Bengal. The Central financial institution has taken the choice after it discovered that the financial institution doesn’t have satisfactory capital and incomes prospects, RBI stated in an order dated May 10, 2021.
Depositors don’t want to fear a lot, as they will obtain the complete quantity of their deposits, thanks to the Deposit Insurance and Credit Guarantee Corporation (DICGC). However, depositors are entitled to obtain declare advantages of up to Rs 5 lakh.
RBI stated that within the present state of affairs, the financial institution wouldn’t give you the option to pay its depositors the complete quantity of their deposits. The course of of liquidation will now being.
The financial institution is now prohibited from conducting the enterprise of ‘banking’ which incorporates acceptance of deposits and compensation of deposits. “The continuance of the bank is prejudicial to the interests of its depositors,” RBI stated.
“The Registrar of Cooperative Societies, West Bengal has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank,” RBI stated in its official assertion printed on Thursday, May 13. “Public interest would be adversely affected if the bank is allowed to carry on its banking business any further” RBI added.
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