‘No adequate capital’: Karnala Nagari Sahakari Bank licence cancelled

The Reserve Bank of India (RBI) has cancelled the licence of Karnala Nagari Sahakari Bank, Panvel in Maharashtra because the financial institution doesn’t have “adequate capital and earning prospects”.
The financial institution ceased to hold on banking enterprise with impact from the shut of enterprise on Friday.
“As per the data submitted by the bank, 95 per cent of the depositors will receive full amounts of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC),” the RBI stated.
On liquidation, each depositor can be entitled to obtain deposit insurance coverage declare quantity of deposits as much as a financial ceiling of Rs 5 lakh from DICGC.
Meanwhile, the RBI stated it has penalised three cooperative banks for deficiencies in regulatory compliance. A penalty of Rs 25 lakh every has been imposed on Madhya Pradesh Rajya Sahakari Bank Maryadit, Bhopal, and the Greater Bombay Cooperative Bank Ltd, Mumbai. The RBI has additionally imposed a penalty of Rs 50,000 on Jalna People’s Cooperative Bank Ltd, Jalna, Maharashtra.