RBI cancels licence of Yavatmal-based Babaji Date Mahila Sahakari Bank

The Reserve Bank of India (RBI) has cancelled the licence of Babaji Date Mahila Sahakari Bank Ltd, Yavatmal, Maharashtra, because it didn’t have enough capital and incomes prospects.

The financial institution will stop to hold on banking enterprise from the shut of enterprise on November 11, RBI mentioned in a launch on Friday.

Following the cancellation, the financial institution has been prohibited from conducting the enterprise of banking, together with acceptance of deposits and compensation of deposits.

“The bank with its present financial position would be unable to pay its present depositors in full and public interest would be adversely affected if the bank is allowed to carry on its banking business any further,” the discharge mentioned.

On liquidation, each depositor could be entitled to obtain deposit insurance coverage declare quantity of his/her deposits as much as a ceiling of Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC), the discharge mentioned. As per the info submitted by the financial institution, about 79% of the depositors are entitled to obtain the total quantity of their deposits from DICGC, RBI mentioned.

As on October 16, 2022, DICGC has already paid Rs 294.64 crore of the whole insured deposits.

The RBI has additionally requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra to difficulty an order for winding up the financial institution and appoint a liquidator for the financial institution.