Categories: Banking

RBI cancels the licence of Vasantdada Nagari Sahakari Bank

The Reserve Bank of India (RBI) has cancelled the licence of Maharashtra-based Vasantdada Nagari Sahakari Bank, with immediate effect. Vasantdada Nagari Sahakari Bank Ltd will now not be allowed to conduct the business of ‘banking’, including acceptance of deposits and repayment of deposits, with effect from the close of business on January 11, 2021.

RBI has requested the Commissioner for Cooperation and Registrar of Cooperative Societies (RCS), Maharashtra to issue an order for winding up the bank and appoint a liquidator for the bank.

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Reason of Cancellation:

The Bank has failed to comply with the requirements of Section 11(1) read with Section 56 of BR Act and thus would be unable to pay its present depositors in full in its current financial position.

Consumer interest protected:

With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of Vasantdada Nagari Sahakari Bank Ltd., Osmanabad, Maharashtra as per the DICGC Act, 1961 will be set in motion. Every depositor is entitled to repayment of his/her deposits up to Rs 5,00,000 from the DICGC. More than 99% of the depositors of the bank will get full repayment of their deposits from DICGC.

Important takeaways for all competitive exams:

  • Deposit Insurance and Credit Guarantee Corporation Establishment: 1978.
  • Deposit Insurance and Credit Guarantee CorporationChairman: Michael Debabrata Patra (Deputy Governor, RBI).
  • Deposit Insurance and Credit Guarantee Corporation Headquarter: Mumbai, Maharashtra.
  • Reserve Bank of India (RBI) Headquarters: Mumbai, Maharashtra.
  • Reserve Bank of India Establishment: 1 April 1935.
  • Reserve Bank of IndiaGovernor: Shaktikanta Das.
  • Reserve Bank of India Deputy Governors: 4 (Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra, and M Rajeswar Rao).

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

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