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The Reserve Bank of India has canceled the license of The Lakshmi Co-operative Bank of Solapur MEERI News

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Solapur : Leader News Service : The Reserve Bank of India (RBI), vide order dated September 14, 2022, has canceled the license of The Lakshmi Co-operative Bank Limited, Solapur, Maharashtra. Consequently, the Bank ceased to carry on banking business with effect from the closure of business on 22 September 2022.

The Commissioner of Co-operatives and Registrar of Co-operative Societies, Maharashtra has also been requested to issue an order to close the bank. Liquidator for the bank. RBI revoked the bank’s license. The bank does not have sufficient capital and earning potential.
As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949. Lal) Bank has failed to comply with departmental requirements. 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with section 56 of the Banking Regulations, 1949 Bank Act Keeping is adverse to the interest of its depositors
(r) A bank with its current financial condition will not be able to pay its current depositors in full.

The public interest will be adversely affected if the bank is allowed to carry on banking business any longer. With the cancellation of its licence, Lakshmi Co-operative Bank Limited, Solapur, Maharashtra is prohibited from carrying on the business of ‘banking’ which includes, inter alia, the acceptance of deposits and the making of deposits. Includes reimbursement, as defined in Section 5. Read with immediate effect Section 56 of the Banking Regulation Act, 1949.

Upon liquidation, each depositor shall be entitled to receive deposit insurance claim amount from Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a financial limit of 25,00,000/- (Rupees Five Lakhs only) of his/her deposits.

Provisions of DICGC Act, 1961. According to the data presented by the bank, about 99% of the depositors are entitled to get the full amount of their deposits from DICGC. As on 13 September 2022, DICGC has already paid Rs 193.68 crore of the total insured deposits as per the provisions of Section 18 of the DICGC Act, 1961 based on the willingness received from the respective depositors of the bank.

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