Category : Business and economicsPublished on: June 19 2024
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The Reserve Bank of India (RBI) has cancelled the licence of Purvanchal Co-operative Bank, Ghazipur, Uttar Pradesh, due to inadequate capital and poor earning prospects.
The Uttar Pradesh Commissioner for Cooperation and Registrar of Cooperative Societies has been instructed to wind up the bank and appoint a liquidator.
On liquidation, depositors will be entitled to receive up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
According to the bank's data, about 99.51% of depositors are expected to receive the full amount of their deposits under this insurance scheme.
The cooperative bank, given its current financial condition, cannot fully repay its depositors. The DICGC has already disbursed Rs 12.63 crore of the total insured deposits as of May 30, 2024, based on depositors' willingness to claim.
