Attention account holders! RBI cancels licence of THIS bank — this is how depositors can withdraw their hard-earned money

RBI Cancels Bank Licence: The Reserve Bank of India (RBI) said on Friday that it has cancelled the licence of Babaji Date Mahila Sahakari Bank Limited, Yavatmal, Maharashtra, because the lender does not have acceptable capital and earning prospects.

RBI cited the data submitted by Babaji Date Mahila Sahakari Bank Limited to say that about 79 per cent of the bank's depositors are entitled to receive full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC).

As on October 16, 2022, DICGC has already cleared Rs 294.64 crore of the total insured deposits.

As an effect of the cancellation of its licence, Babaji Date Mahila Sahakari Bank Limited has been banned from conducting the business of 'banking' which includes, among other effects, acceptance of deposits and prepayment of deposits with immediate effect.

While declaring cancellation of Babaji Date Mahila Sahakari Bank's licence with effect from the close of business on Friday (November 11, 2022), RBI said that the bank doesn't have acceptable capital and earning prospects.

RBI in its communication said: "The bank with its present fiscal position would be unfit to pay its present depositors in full; and public interest would be negatively affected if the bank is allowed to carry on its banking business any farther."

RBI cancels Babaji Date Mahila Sahakari Bank Licence: Information for Depositors  

On liquidation, every depositor of Babaji Date Mahila Sahakari Bank would be entitled to receive from DICGC a deposit insurance claim amount of his/ her deposits up to a monetary ceiling of Rs 5 lakh.

The RBI further said the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up Babaji Date Mahila Sahakari Bank and appoint a liquidator for the lender.