Categories: Banking

RBI cancelled licence of Mudhol Co-op Bank, Bagalkot, Karnataka

The Reserve Bank of India has cancelled the licence of “The Mudhol Co-operative Bank Limited, Bagalkot (Karnataka)”, thus restricting it from repayment of deposits and acceptance of fresh funds. The bank does not have adequate capital and earning prospects, the Reserve Bank of India (RBI) said while announcing the cancellation of licence. RBI also said that bank with its present financial position would be unable to pay its present depositors in full.

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Why this step taken by RBI?

RBI said that bank with its present financial position would be unable to pay its present depositors in full.
As per the data submitted by the bank, RBI said more than 99 per cent of the depositors are entitled to receive full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
On liquidation, every depositor would be entitled to receive deposit insurance claim amount up to Rs 5 lakh from the DICGC.
DICGC has already paid Rs 16.69 crore of the total insured deposits based on the willingness received from the concerned depositors of the bank, the RBI added.

Important takeaways for all competitive exams:

DICGC Chairperson: Michael Patra;
DICGC Headquarters: Mumbai;
DICGC Founded: 15 July 1978.

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Sumit Arora

As a team lead and current affairs writer at Adda247, my role involves researching and creating informative and engaging content aimed at helping candidates prepare for national and state-level competitive government exams. I specialize in delivering insightful articles that keep aspirants updated on the latest current affairs trends and developments. My primary focus is on educational excellence, ensuring that our readers are well-prepared and informed to face their exams with confidence. Through meticulously crafted content, I aim to guide and support candidates in their journey toward success.