The Reserve Bank of India has cancelled the licence of Karad Janata Sahakari Bank Ltd in Maharashtra, because it doesn’t have enough capital and incomes prospects. As such, it doesn’t adjust to the provisions of the Banking Regulation Act, 1949. More than 99 per cent of the depositors of the financial institution will get full cost of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC).
With the cancellation of licence and starting of liquidation proceedings, the method of paying the depositors of Karad Janata Sahakari Bank will likely be set in movement. On liquidation, each depositor is entitled to compensation of their deposits as much as ₹ 5 lakh solely from the DICGC. After cancellation of licence from the shut of a enterprise hour on December 7, the financial institution can’t work anymore, which incorporates taking deposits and repaying deposits.
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