RBI terminated Jai Prakash Narayan Nagari Sahakari Bank's license

RBI terminated Jai Prakash Narayan Nagari Sahakari Bank's license

Approximately 99.78% of the depositors are eligible to collect their whole deposit amount from DICGC, according to the statistics that the bank has provided.

The bank's license has been revoked by RBI due to insufficient capital and earnings potential.

Citing precarious financial standing, the Reserve Bank of India (RBI) revoked Jai Prakash Narayan Nagari Sahakari Bank Limited's license within Maharashtra on February 5.

The RBI said in a statement that as a consequence, the lender would stop doing banking operations as of the close of business on February 6, 2024.

The RBI said that an order to dissolve the bank and appoint a liquidator has also been obtained from the Cooperative Commissioner as well as Registrar of Cooperative Societies, Maharashtra.

According to the press statement, the bank's license was revoked by the Reserve Bank due to insufficient capital and earning potential.

According to the Reserve Bank of India, in the event of liquidation, each depositor shall be entitled to receive, from the Deposit Insurance as well as Credit Guarantee Corporation (DICGC), the amount of any deposit insurance claim, up to a maximum of Rs 5 lakh, in accordance with the terms of the DICGC Act, 1961.

Approximately 99.78 percent of depositors are eligible to collect their whole deposit amount from DICGC, according to statistics provided by the bank.

According to RBI, DICGC has already paid out Rs 23.89 crore of all insured deposits as of September 21, 2023, in accordance with Section 18A of the DICGC Act, 1961, depending on the consent of the relevant bank depositors.