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.
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