The Reserve Bank of India (RBI) has cancelled the licence of Karnala Nagari Sahakari Bank, Panvel in Maharashtra as the bank doesn’t have “adequate capital and earning prospects”.
The bank ceased to carry on banking business with effect from the close of business on Friday.
“As per the data submitted by the bank, 95 per cent of the depositors will receive full amounts of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC),” the RBI said.
On liquidation, every depositor would be entitled to receive deposit insurance claim amount of deposits up to a monetary ceiling of Rs 5 lakh from DICGC.
Meanwhile, the RBI said it has penalised three cooperative banks for deficiencies in regulatory compliance. A penalty of Rs 25 lakh each has been imposed on Madhya Pradesh Rajya Sahakari Bank Maryadit, Bhopal, and the Greater Bombay Cooperative Bank Ltd, Mumbai. The RBI has also imposed a penalty of Rs 50,000 on Jalna People’s Cooperative Bank Ltd, Jalna, Maharashtra.