- On July 11, the license of Sri Sharda Mahila Sahakari Bank, Tumkur, Karnataka and Harihareshwar Sahakari Bank, Y, Satara has been canceled by RBI as the lenders did not have sufficient capital and earning potential.
- Harihareshwar Sahakari Bank ceased banking business with effect from July 11, 2023.
- On liquidation, each depositor will be entitled to receive deposit insurance claim amount up to Rs 5 lakh from DICGC.
- Deposit Insurance and Credit Guarantee Corporation (DICGC) will pay the entire amount to about 99.96% depositors of Harihareshwar Sahakari Bank.
- DICGC will pay the full amount to about 97.82% depositors of Shri Sharda Mahila Sahakari Bank.
- As a result of the cancellation of their licences, banks are prohibited from carrying on the business of 'banking' which includes accepting deposits and repayment of deposits.
- Till June 12, 2023, DICGC has already paid Rs 15.06 crore of the total insured deposits to the depositors of Shri Sharda Mahila Sahakari Bank.
Tags:
Economics
