The RBI on Monday mentioned it has cancelled the licence of Vasantdada Nagari Sahakari Financial institution, Osmanabad, Maharashtra because the financial institution can be unable to pay its current depositors in full in its present monetary place.
With the cancellation of licence and graduation of liquidation proceedings, the method of paying the depositors of Vasantdada Nagari Sahakari Financial institution can be set in movement.
On liquidation, each depositor is entitled to compensation of his/her deposits as much as a financial ceiling of Rs 5,00,000 from the Deposit Insurance coverage and Credit score Assure Company (DICGC), the Reserve Financial institution of India (RBI) mentioned.
“Greater than 99 per cent of the depositors of the financial institution will get full compensation of their deposits from DICGC,” it mentioned.
The licence stands cancelled from the shut of enterprise on Monday and the financial institution can not keep on banking enterprise. Giving particulars, it mentioned continuance of Vasantdada Nagari Sahakari Financial institution is prejudicial to the pursuits of its depositors.
“…the financial institution with its current monetary place can be unable to pay its current depositors in full,” the RBI mentioned.
The Commissioner for Cooperation and Registrar of Cooperative Societies (RCS), Maharashtra has additionally been requested to concern an order for winding up the financial institution and appointing a liquidator for the financial institution, it added.