RBI cancels license of Maharashtra’s Laxmi Co-operative Bank, depositers can claim up to THIS much amount

Maharashtra’s Laxmi Co-operative Bank news: The Reserve Bank of India (RBI) on Thursday (September 22) cancelled the licence of Maharashtra’s Laxmi Co-operative Bank Limited. The central bank has cancelled the co-operative bank’s license as it does not have adequate capital and earning prospects.

The bank will cease to carry on banking business, with effect from the close of business on September 22, 2022, a statement from RBI said. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

“The Laxmi Co-operative Bank Limited, Solapur, Maharashtra is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect,” the statement said.

“On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961,” it added.

As per the data submitted by the bank, about 99% of the depositors are entitled to receive full amount of their deposits from DICGC. As on September 13, 2022, DICGC has already paid Rs 193.68 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961 based on the willingness received from the concerned depositors of the bank.

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