The Reserve Bank of India (RBI)’s expert committee on primary (urban) co-operative banks (UCBs) has recommended a regulatory nudge for weak UCBs to explore voluntary merger or conversion into a non-banking society at an early stage.
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The Reserve Bank of India (RBI) had cancelled licence of yet another bank, this time Osmanabad-based Vasantdada Nagari Sahakari Bank Ltd while requesting Maharashtra’s commissioner for cooperation and registrar of cooperative Societies (RCS) to issue an order for winding up the bank and appoint a liquidator for the bank.
The official release said that the RBI vide an order on 8 January 2021 had cancelled the licence of Vasantdada Nagari Sahakari Bank to carry on banking business, with effect from the close of business on 11 January 2021.
With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of Vasantdada Nagari Sahakari Bank as per the DICGC Act, 1961 will be set in motion.
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1 Four banks may fail to meet the minimum capital level by September if there is no resuscitation by the stakeholders.
Sandeep Dikshit
New Delhi, January 11
Bad loans of Indian banks may double by September this year despite a slight improvement in the gross non-performing assets (NPA) during the Covid era, according to an RBI report released on Monday.
Four banks may fail to meet the minimum capital level by September if there is no resuscitation by the stakeholders, it warned.
The warning came on a day the RBI cancelled the licence of Vasantdada Nagari Sahakari Bank. The Maharashtra-headquartered bank will be unable to pay its present depositors, said the RBI.
The Reserve Bank of India has through an order dated January 08, 2021 cancelled the licence of Vasantdada Nagari Sahakari Bank Ltd., Osmanabad, Maharashtra to carry on banking business, with effect from the close of business on January 11, 2021.
The Commissioner for Cooperation and Registrar of Cooperative Societies (RCS), Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. The Reserve Bank cancelled the licence of the bank as the bank has failed to comply with the requirements of Section 11(1) read with Section 56 of BR Act.
“The bank has become disentitled to carry on the business of banking in India, by reason of the cancellation of its licence issued to it by the Reserve Bank of India, under Section 22(1) read with Section 56 of BR Act as it has failed to comply with the requirements of Section 22(3) (a), 22(3) (b), 22(3) (c), 22(3) (d) and 22(3) (e) of BR Act”, reads a release from the RBI.
RBI cancels licence of THIS bank, here s what will happen to your money
The RBI has requested Commissioner for Cooperation and RCS, Maharashtra to issue an order for shutting down the day-to-day operations of the bank. Reserve Bank of India
Updated: Jan 12, 2021, 04:11 PM IST
The Reserve Bank of India (RBI) has cancelled the licence of Vasantdada Nagari Sahakari Bank Ltd. The bank is located in Maharashtra s Osmanabad. The RBI has requested Commissioner for Cooperation and Registrar of Cooperative Societies (RCS), Maharashtra to issue an order for shutting down the day-to-day operations of the bank.The RBI has also requested the RCS to appoint a liquidator for Vasantdada Nagari Sahakari Bank Ltd.