RBI Revokes Licence Of Assam-Based Mahabhairab Cooperative Urban Bank
The RBI stated that the decision to revoke the licence was due to the bank's inadequate capital and poor earnings outlook.
The Reserve Bank of India announced on Wednesday that it has revoked the licence of The Mahabhairab Cooperative Urban Bank, based in Assam's Tezpur, citing its declining financial health. With the cancellation of its licence, the cooperative bank will cease all banking operations effective at the close of business on July 24.
In a statement, the RBI informed that it has requested the Registrar of Cooperative Societies, Assam, to initiate proceedings to wind up the bank and appoint a liquidator.
The RBI said the decision to revoke the licence was due to the bank's inadequate capital and poor earnings outlook.
"The bank with its present financial position would be unable to pay its present depositors in full," it said, adding the continuance of the bank is prejudicial to the interest of its depositors.
On liquidation, every depositor would be entitled to receive insurance claim amount of his/her deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corp.
RBI said as per the data submitted by the cooperative bank, about 99.8% of the depositors are entitled to receive the full amount of their deposits from DICGC.
As on June 13, DICGC has already paid Rs 20.03 crore of the total insured deposits.
(With inputs from PTI)
