Reserve Bank of India (RBI) has canceled the license of another co-operative bank. RBI canceled the license of Pune-based ‘The Seva Vikas Co-operative Bank’ due to lack of sufficient capital and earning potential in this bank. In an official statement, the Reserve Bank said that due to the cancellation of banking license, The Sewa Vikas Sahakari Bank is shutting down its operations from October 10. After the closure of the bank, now the big question is what will happen to the deposits of its account holders?
order to stop business
According to the Reserve Bank’s statement dated October 10, 2022, the license of Sewa Vikas Co-Operative Bank Ltd., Pune has been cancelled. An official statement said that the Commissioner of Cooperatives and the Registrar of Cooperative Societies have been requested to issue an order appointing a liquidator for winding up the bank.
Not able to refund depositors money!
According to the statement, the Reserve Bank has canceled the license of Sewa Vikas Co-Operative Bank Limited on the ground that it does not have sufficient capital and earning potential. According to RBI, it is not in the interest of the depositors to continue the functioning of the Sewa Vikas Co-operative Bank. The bank with its financial position is currently not able to return the capital of its depositors.
Who will give money to the customers?
Customers whose money is deposited in Seva Vikas Sahakari Bank will get the benefit of insurance cover on deposits up to Rs 5 lakh. This insurance is being received from the Insurance and Credit Guarantee Corporation (DICGC). DICGC is also a subsidiary of the Reserve Bank. This cooperative provides financial security to the customers of the bank.
Now if those whose funds up to five lakh rupees are deposited in this cooperative bank, they will get full claim from DICGC. Customers who have deposits of more than Rs 5 lakh, they will not be able to get the full amount. DICGC will compensate the amount up to Rs 5 lakh only.
License of this bank was also canceled
Due to non-compliance with the guidelines, the Reserve Bank had also recently canceled the license of Rupee Co-operative Bank Ltd., Pune. The services of Rupee Sahakari Bank were stopped from 22 September.