RBI cancels the license of Sarjerodada Naik Shirala Sahakari Bank of Maharashtra, 99% of the depositors will get the money back

The Reserve Bank of India (RBI) on Wednesday said it has canceled the license of Maharashtra-based Sarjerodada Naik Shirala Sahakari Bank Ltd. RBI said that the cooperative bank did not have enough capital and earning prospects, due to which the decision had to be taken to cancel its license. The headquarter of this co-operative bank is located at Shirala in Sangli district of Maharashtra.

“With the cancellation of the licence, the banking business of the Sargerodada Naik Shirala Sahakari Bank Limited has been ceased with the close of the business day on Wednesday,” RBI said in a statement. According to the statement, the Maharashtra Cooperation Commissioner and the Registrar of Cooperative Societies have also been requested to issue an order to close the bank and appoint a liquidator for the same.

What will happen to the customers whose money is deposited in the bank?

RBI said that all the customers whose money is deposited in the bank can claim their money under the DICGC Act, 1961. Through this claim, customers will get up to 5 lakh deposited in the bank from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

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According to the bank’s data, 99 percent of the depositors of the bank will get the full amount deposited in their account. This is because he has less than Rs 5 lakh deposited in his account. As on 27 January 2022, DICGC has sanctioned a total of Rs 64.70 crore as insurance claims based on the requests received from the depositors of the bank.

RBI said that it was not in the interest of the customers and especially the depositors to keep the bank running. The present position of the bank is not such that it can return the full amount to its depositors on demand. In such a situation, if the bank is allowed to continue, then it will affect the public interest.

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