The Reserve Bank of India on May 31 cancelled the licence of Shivajirao Bhosle Sahakari Bank in Maharashtra citing poor finances of the Co-operative bank.
Consequently, the bank ceases to carry on banking business with effect from the close of business on May 31, 2021.
As per the data submitted by the bank, more than 98 percent of the depositors will receive full amounts of their deposits from Deposit Insurance and Credit Guarantee Corporation.
The registrar of cooperative societies has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
The reserve bank cancelled the licence of bank as the lender does not have adequate capital and earning prospects. The continuance of the bank is prejudicial to the interests of its depositors.
Consequent to the cancellation , the bank is prohibited from the business of "banking "which includes acceptance of deposits and repayment of deposits.
In Goa too, there are some cooperative banks that are under the scanner of the RBI. The apex bank must put in place strict mechanisms so that people’s hard earned money is not lost.
