RBI cancels the licence of Banaras Merchantile Co-operative Bank Limited, Varanasi - আরবিআই - Reserve Bank of India
RBI cancels the licence of Banaras Merchantile Co-operative Bank Limited, Varanasi
The Reserve Bank of India (RBI), vide order dated July 03, 2024, has cancelled the licence of “Banaras Merchantile Co-operative Bank Limited, Varanasi”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on July 04, 2024. The Commissioner for Cooperation and Registrar of Cooperative Societies, Uttar Pradesh 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 the bank as:
2. Consequent to the cancellation of its licence, “Banaras Merchantile Co-operative Bank Limited, Varanasi” 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. 3. 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. As per the data submitted by the bank, 99.98% of the depositors are entitled to receive full amount of their deposits from DICGC. As on April 30, 2024 DICGC has already paid ₹4.25 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.
(Puneet Pancholy) Press Release: 2024-2025/630 |