Reserve Bank of India cancels the license of “The Mudhol Co-operative Bank Limited, Dist.- Bagalkot, Karnataka” - আরবিআই - Reserve Bank of India
Reserve Bank of India cancels the license of “The Mudhol Co-operative Bank Limited, Dist.- Bagalkot, Karnataka”
Today, the Reserve Bank of India (RBI), vide order dated June 03, 2022, has cancelled the license of “The Mudhol Co-operative Bank Limited, Dist.- Bagalkot, Karnataka”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on June 08, 2022. The Commissioner for Cooperation and Registrar of Cooperative Societies, Karnataka has been requested to issue an order for winding up the bank and appoint a liquidator for the bank. The Reserve Bank cancelled the license of the bank as:
2. Consequent to the cancellation of its license, “The Mudhol Co-operative Bank Limited, Dist.- Bagalkot, Karnataka” 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 the Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of the DICGC Act, 1961. As per the data submitted by the bank, more than 99% of the depositors are entitled to receive full amount of their deposits from DICGC. DICGC has already paid ₹16.69 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. (Yogesh Dayal) Press Release: 2022-2023/339 |