New Delhi: The Reserve Bank of India (RBI) on Monday (December 04, 2023) canceled the license of Shankarao Pujari Nutan Nagri Asahi Bank Limited, Ichalkaranji, Kolhapur.
“Consequently, the Bank ceases to carry on banking business with effect from the closure of business on December 04, 2023. The Cooperative Commissioner and Registrar Cooperative Societies, Maharashtra are also requested to issue an order to wind up the Bank and appoint a liquidator for the Bank,” RBI said. said in a release.
The Reserve Bank revoked the bank’s license due to lack of sufficient capital and earning potential. 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, RBI said.
– The Central Bank further adds that the Bank has failed to comply with the requirements of Sections 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and Secs. 22(3)(e) read with section 56 of the Banking Regulation Act, 1949;
– The continuation of the bank is detrimental to the interests of its depositors;
– With the current financial condition the bank will be unable to pay its current depositors in full; And
– Public interest will be adversely affected if the bank is allowed to continue its banking business.
RBI has prohibited Shankarao Pujari Nutan Nagri Asahi Bank Limited from carrying on any further banking business.
“Consequent to the cancellation of its license, “Shankar Rao Pujari Nutan Nagri Assistant Bank Limited, Ichalkaranji, Kolhapur” is prohibited from carrying on the business of ‘banking’, which includes, inter alia, acceptance of deposits and payment of deposits as defined in para. 5(b) with immediate effect along with section 56 of the Banking Regulation Act, 1949,” RBI said.
What will happen to the customer’s money after RBI revokes the license of Shankarao Pujari Nutan Nagri Asahi Bank Limited?
At the time of liquidation, each depositor will be entitled to receive the deposit insurance claim amount of his deposit up to a limit of Rs.5,00,000 (Tk. Five Lakhs only) from the Deposit Insurance and Credit Guarantee Corporation (DICGC). DICGC Act, 1961.
According to the data submitted by the bank, 99.85% depositors are entitled to receive the full amount of their deposits from DICGC. As on July 24, 2023 DICGC has already paid Rs 41.60 crore of total insured deposits under the provisions of Section 18A of the DICGC Act, 1961 based on the wishes received from the concerned depositors of the Bank.
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