Reserve Bank of India cancels the license of Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi, Gujarat - આરબીઆઈ - Reserve Bank of India
Reserve Bank of India cancels the license of Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi, Gujarat
The Reserve Bank of India (RBI), vide order dated January 12, 2024, has cancelled the license of “Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on January 12, 2024. Registrar of Cooperative Societies, Gujarat 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 license of the bank as:
2. Consequent to the cancellation of its license “Shree Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi” is prohibited from conducting the business of ‘banking’ which includes 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 99.36% of the depositors are entitled to receive full amount of their deposits from DICGC. As on September 30, 2023, DICGC has sanctioned ₹24.58 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: 2023-2024/1672 |