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Reserve Bank of India cancels licence of this cooperative urban bank: Details

Mumbai: The Reserve Bank of India (RBI) has cancelled the licence of Tezpur-based The Mahabhairab Cooperative Urban Bank. RBI took this decision due to the deteriorating financial condition of Mahabhairab Cooperative Urban Bank.

The cooperative bank ceases to carry on banking business, with effect from the close of business on July 24, 2024. The Mahabhairab Cooperative Urban Bank does not have adequate capital and earning prospects.

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The Registrar of Cooperative Societies, Assam has also been requested to issue an order for winding up the bank and appoint a liquidator.

On liquidation, every depositor would be entitled to receive insurance claim amount of his/her deposits up to Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI said as per the data submitted by the cooperative bank, about 99.8 per cent of the depositors are entitled to receive the full amount of their deposits from DICGC. As on June 13, 2024, DICGC has already paid Rs 20.03 crore of the total insured deposits.

 

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