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HomeBusinessRBI revokes Laxmi Co-operative Bank license, allows depositors to withdraw up to...

RBI revokes Laxmi Co-operative Bank license, allows depositors to withdraw up to Rs 5 Lakh MIGMG News

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Last updated: 23 September 2022 at 10:03 IST

RBI revokes the license of this bank;  I know why

RBI revokes the license of this bank; I know why

On liquidation, all depositors of Laxmi Co-operative Bank are entitled to receive deposit insurance claim amount from their deposits up to a cash cap of INR 5,000.

The Reserve Bank of India on Thursday revoked the license of Maharashtra-based Laxmi Co-operative Bank, saying the lender did not have sufficient capital and profit prospects. While revoking the license, the Reserve Bank of India also announced that upon liquidation, all depositors of Laxmi Co-operative Bank would be entitled to receive deposit insurance claim amount from their deposits up to a cash cap of Rs 5 lakh. As a result of license revocation, Laxmi Co-operative Bank will not be able to conduct any banking related activities, the Reserve Bank of India said in its circular.

“Today, the Reserve Bank of India (RBI), by order of 14 September 2022, has rescinded the license of ‘Laxmi Co-operative Bank Limited, Solapur, Maharashtra.’ Hence, the Bank has ceased to engage in banking, with effect from closing of business on 22 September 2022. It has also been requested. It is the Commissioner of Cooperation and Registrar of Co-operative Societies, Maharashtra to issue an order to liquidate the bank and to appoint a liquidator for the bank,” the Reserve Bank of India said in a circular dated September 22.

(Details will be added soon)

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