The Reserve Bank Of India (RBI) in a statement has said that it has canceled the license of Vasantdada Nagari Sahakari Bank located in Usmanabad, Maharashtra.
RBI said that in view of its current financial situation the bank would not be able to return the money to its customers, and due to this reason, its license has been canceled.
The central bank said that with the cancellation of the license and liquidation of the cooperative bank, the process of returning the money of depositors of Vasantdada Nagari Cooperative Bank will also be started soon. After the liquidation, the Reserve Bank said that depositors from the Deposit Insurance and Credit Guarantee Corporation will be eligible to get deposits up to five lakh rupees. In this way, about 99% of the depositor’s money will be returned by the Cooperative Bank.
The RBI also said that the license of the concerned shall be stated invalid after its operations on Monday and therefore after Monday the bank will not be functional anymore.
The Commissioner for Cooperation and Registrar of Cooperative Societies (RCS), Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. The RBI took the following action as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 and the liquidation and deposition process shall be carried out as per guidelines mentioned in the DICGC Act, 1961