Nashik Zilla Girna Sahakari Bank’s Registration Cancelled by RBI
Moneylife Digital Team 27 September 2023
The Reserve Bank of India (RBI) has cancelled the certificate of registration of Nashik Zilla Girna Sahakari Bank Ltd due to the Bank’s inadequate capital and failure to comply with the banking regulations. Nashik Zilla Girna Sahakari Bank ceased banking business on 26 September 2023.
 
RBI says that the Bank does not have adequate capital and earning prospects and has failed to comply with the requirements of the Banking Regulation Act.
 
“The continuance of the Bank was prejudicial to the interests of its depositors. With their present financial position, the Bank would be unable to pay their present depositors in full. The public interest would be adversely affected if the Bank is allowed to carry on its banking business any further,” RBI says.
 
According to RBI, on liquidation, every depositor in Nashik Zilla Girna Sahakari Bank would be entitled to receive the deposit insurance claim amount of his/ her deposits up to Rs5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).
 
As per the data submitted by the Bank, 99.92% of the depositors are entitled to receive full deposits from DICGC. As of 24 July 2023, DICGC has already paid Rs16.27 crore of the total insured deposits based on the willingness received from the concerned depositors of the Nashik-based Bank.
Comments
spicesich
2 months ago
IT IS NOT THE REGISTRATION BUT BANKING LICENCE IS CANCELLED TO PROBIHIT BANKING BUSINESS AFTER THAT. THE REGISTRATION IS GRANTED BY THE CONCERNED UNDER THE STATE COOP ACT. THE ACTION OF CANCELLATION WILL BE DNE BY THE CCOP DEPT. PLEASE BE SPECIFIC ABOUT THE RBI ACTIONS.
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