MumbaiThe Reserve Bank of India (RBI) on Thursday canceled the license of Maharashtra-based The Lakshmi Co-operative Bank, citing lack of adequate capital. On liquidation, each depositor will be entitled to receive a deposit insurance claim amount up to Rs.5 lakh.
According to RBI, the bank with its current financial position will be unable to make full payments to its existing depositors and public interest will be adversely affected if the bank is allowed to continue.
“The Reserve Bank has canceled the license of the bank as the lender does not have adequate capital and earning potential and the continuity of the bank is prejudicial to the interests of its depositors,” RBI said in a statement.
“Upon liquidation, every depositor shall be entitled to receive deposit insurance claim amount from the Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of the DICGC Act, 1961 up to a monetary limit of Rs 5 lakh,” the central bank said.
The Cooperative Commissioner and the Registrar of Cooperative Societies (Maharashtra) have also been asked to issue an order to cease operations and appoint a liquidator for the bank.
how much has been paid so far
Based on bank data, around 99 per cent of the depositors are entitled to receive the full amount of their deposits from DICGC. As of September 13, Lakshmi Sahakari Bank has already paid Rs 193 crore of the total Sum Assured deposit amount on the basis of wishes received from the concerned depositors of the bank.