RBI cancels the licence of Sri Mallikarjuna Pattana Sahakari Bank Niyamita, Maski, Karnataka - ਆਰਬੀਆਈ - Reserve Bank of India
RBI cancels the licence of Sri Mallikarjuna Pattana Sahakari Bank Niyamita, Maski, Karnataka
The Reserve Bank of India (RBI), vide order dated September 21, 2023, has cancelled the licence of Sri Mallikarjuna Pattana Sahakari Bank Niyamita, Maski, Karnataka. Consequently, the bank ceases to carry on banking business, with effect from the close of business on September 22, 2023. The Registrar of Cooperative Societies, Bengaluru has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. RBI cancelled the licence of the bank as:
2. Consequent to the cancellation of its licence, Sri Mallikarjuna Pattana Sahakari Bank Niyamita, Maski, 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 Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961. As per the data submitted by the bank, 99.50% of the depositors are entitled to receive full amount of their deposits from DICGC. As on May 31, 2023, DICGC has already paid ₹5.38 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. (Shweta Sharma) Press Release: 2023-2024/974 |