RBI cancels licence of Madgaum Urban Co-operative Bank Ltd, Margao
The Reserve Bank of India cancelled the license of Madgaum Urban Cooperative Bank Co., Ltd., located in Margao, Goa, because due to the current financial situation of the bank they will not be able to pay its current depositors in full.
- The Reserve Bank of India further stated that based on the data submitted by the bank, approximately 99% of depositors will receive full deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- At the time of liquidation, every depositor has the right to receive a deposit insurance claim amount from their deposits, up to a maximum limit of 500,000 rupees, only from DICGC.
- The Reserve Bank of India added that it also asked the Goa Registrar of Cooperatives to issue a liquidation order and appoint a liquidator for the bank.
The Bank did not have sufficient prospects for capital and earnings, and did not comply with the provisions of the Banking Regulation Act, 1949.
With the cancellation of the license and the beginning of the liquidation process, the payment process to the depositors will soon begin.
Month: Current Affairs - July, 2021