On Monday, Reserve Bank of India has cancelled the licence of the Shivajirao Bhorle Sahakari Bank, in Pune because of the reason that the lender does not have an adequate capital and earning prospects. According to a data which was submitted by the Shivajirao Bhorle Sahakari Bank , it was mentioned that was about more than 98% of the depositors are going to receive their deposits from the deposit insurance and the Credit Guarantee Corporation. These was released by the Reserve Bank of India.
On the period of liquidation, every depositor is eligible to receive deposit insurance claim of an amount of monetary ceiling of 5 lakhs from the DICGC. RBI has also mentioned that the Bank doesn’t have any adequate capital and earning prospective and it is not following the rules and regulations which was given by the Banking Regulation Act, 1949.It has also infringed the provisions which were made by the Banking and Regulation Act.
It also mentioned the consequent for the cancellation of the licence of Shivajirao Bhorle Sahakari Bank which is prohibited from conducting the business of banking, which also includes the acceptance of deposits and repayment of deposits were conducted with an immediate cause.