RBI cancels the license of Madgaon Urban Co-Operative Bank Ltd
Reserve Bank of India
- RBI has canceled the license of Madgam Urban Cooperative Bank Ltd.
- RBI said that the Bank has failed to comply with the Regulation Act, 1949.
- The bank does not have sufficient capital and earning potential.
Mumbai: The Reserve Bank of India (RBI) on Thursday canceled the license of Goa-based Madgam Urban Co-Operative Bank Limited. This is because the bank is unable to make full payments to its existing depositors with its current financial position.
The Reserve Bank said that according to the data of the cooperative bank, about 99 percent of the depositors’ deposits will be received from the Insurance and Credit Guarantee Corporation (DICGC). The depositor will be entitled to claim a deposit insurance claim of his deposit up to a monetary limit of Rs.5 lakh.
The Reserve Bank said that the Office of the Registrar of Co-operative Societies, Goa, has also been requested to issue an order to close the bank and appoint a liquidator for it.
The central bank said that the Madgam Urban Cooperative Bank does not have sufficient capital and earning potential. At the same time, it has failed to comply with various provisions of the Banks Regulation Act, 1949.
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