Shankarrao Mohite Patil Sahakari Bank's Licence Cancelled by RBI
Moneylife Digital Team 14 April 2025
Reserve Bank of India (RBI) has cancelled the certificate of registration (CoR) of Maharashtra-based Shankarrao Mohite Patil Sahakari Bank Ltd due to inadequate capital and the lender's poor earning prospects. RBI has asked Shankarrao Mohite Patil Sahakari Bank to stop banking business from 11 April 2025.
 
RBI says Shankarrao Mohite Patil Sahakari 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 Shankarrao Mohite Patil Sahakari Bank is prejudicial to the interests of its depositors. With its present financial position, it would be unable to pay its 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.
 
Due to the cancellation of its licence, Shankarrao Mohite Patil Sahakari Bank is prohibited from conducting business, including accepting fresh and repaying deposits.
 
According to RBI, on liquidation, every depositor of Shankarrao Mohite Patil Sahakari Bank is entitled to receive a deposit insurance claim amount of his or her deposits up to a monetary ceiling of Rs5 lakh from deposit insurance and credit guarantee corporation (DICGC).
 
As per the data submitted by Shankarrao Mohite Patil Sahakari Bank, 99.72% of the depositors are entitled to receive the full amount of their deposits from DICGC. As of 31 August 2025, DICGC has already paid Rs47.89 crore of the total insured deposits based on the willingness received from the concerned depositors of the Maharashtra-based lender.
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kalemohan
7 months ago
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