Categories: Banking

RBI scraps licence of MP-based Garha Co-operative Bank

RBI scraps licence of MP-based Garha Co-operative Bank

The Reserve Bank of India (RBI) due to insufficient capital and earning potential revoked the licence of Madhya Pradesh’s Garha Co-operative Bank, Guna. According to a statement from the RBI, approximately 98.4% of the depositors of the cooperative bank are eligible to receive the full value of their savings from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

RBI scraps licence of MP-based Garha Co-operative Bank: Key Points

● The bank is immediately forbidden from carrying out a number of activities, including accepting deposits and repaying deposits, as a result of the termination of its licence.
● The bank lacks sufficient capital and earning potential, according to the RBI, which revoked the licence with effect as of Monday’s end of business hours.
● Furthermore, it stated that given its current financial situation, Garha Co-operative Bank would be unable to fully reimburse its depositors.

Indian Overseas Bank Launched Electronic Bank Guarantee Scheme

What will happen to the depositors?

● Every depositor would be entitled to receive the deposit insurance claim amount of his or her deposits from DICGC upon liquidation, up to a maximum financial limit of Rs 5,00,000.
● DICGC has already paid out Rs 12.37 crore of the total protected deposits as of December 19, 2022, depending on the consent given by the relevant bank depositors.

Also Read: Karnataka Bank awarded ‘Prathista Puraskar for achieving the highest percentage in BHIM-UPI transactions

Recent Posts

Which District is known as the Medical City of Uttar Pradesh?

Did you know that one district in Uttar Pradesh is famous for its advanced hospitals…

16 hours ago

Which was the First Women’s University in India? Where it is Located?

Did you know that there was a time when girls in India were not allowed…

16 hours ago

L&T Vyoma to Study 250 MW Green AI Data Centre at Dholera SIR

At India AI Impact Summit 2026, the Gujarat government signed a Memorandum of Understanding (MoU)…

18 hours ago

Made in India: Nadda Launches Indigenous Td Vaccine at Kasauli Centre

Union Health Minister Jagat Prakash Nadda launched the indigenously manufactured Tetanus and Adult Diphtheria (Td)…

18 hours ago

Which Island is known as the Island of Pepper?

Did you know that one small island became famous across the world because of a…

18 hours ago

Railways Goes Smart! AI-Enabled Apps to Fix Grievances & Manage Crowds Before Chaos

Indian Railways has integrated Artificial Intelligence (AI) into seven key passenger-facing applications to improve grievance…

19 hours ago