RBI cancels licence of Kolhapur-based Shankarrao Pujari Nutan Nagari Sahakari Bank
Reserve Bank of India (RBI), Monday cancelled the licence of Kolhapur-based Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Ichalkaranji and asked the bank not to carry on any banking business, with effect from the close of business on December 4, 2023. “Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Ichalkaranji, Kolhapur is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect, the Reserve Bank said.
The apex bank said the Shankarrao Pujari Nutan Nagari Sahakari Bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949.
The banking regulator also said the co-operative bank has failed to comply with certain sections of the Banking Regulation Act, 1949. The Reserve Bank further said the public interest would be adversely affected if the United India Co-operative Bank is allowed to carry on its banking business any further as the bank with its present financial position would be unable to pay its present depositors in full.
On liquidation, the Reserve Bank said that every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000 from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961. As per the data submitted by the bank, 99.85% of the depositors are entitled to receive the full amount of their deposits from DICGC.
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