RBI Cancels Licence of Laxmi Co-Operative Bank, Allows Depositors to Withdraw up to Rs 5 Lakh


Last Updated: September 23, 2022, 10:03 IST

RBI cancels this bank's licence; Know why

RBI cancels this bank’s licence; Know why

On liquidation, all depositors of Laxmi Co-operative Bank will be entitled to receive deposit insurance claim amount of his or her deposits up to a monetary ceiling of Rs 5 lakh.

The Reserve Bank of India on Thursday cancelled the licence of Maharashtra-based Laxmi Co-operative bank, saying that the lender does not have adequate capital and earning prospects. While cancelling the licence, the RBI also announced that on liquidation, all depositors of Laxmi Co-operative bank will be entitled to receive deposit insurance claim amount of his or her deposits up to a monetary ceiling of Rs 5 lakh. As a consequence of the cancellation of licence, the Laxmi Co-operative Bank will not be able to conduct any activities related to banking, the RBI further said in its circular.

“Today, the Reserve Bank of India (RBI), vide order dated September 14, 2022, has cancelled the licence of “The Laxmi Co-operative Bank Limited, Solapur, Maharashtra”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on September 22, 2022. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank,” said the RBI in a circular dated September 22.

(Details to be added soon)

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