Licence Revoked: The RBI on Wednesday said it has cancelled the licence of Tezpur-based Mahabhairav Sahakari Urban Bank due to its deteriorating financial position. Following the cancellation of the licence, the cooperative bank will cease to carry on banking business from the close of business on July 24, 2024. In a statement, the Reserve Bank of India (RBI) said the Registrar of Cooperative Societies, Assam has also been requested to issue an order winding up the bank and appointing a liquidator. Citing reasons for cancellation of licence, the RBI said the lender does not have adequate capital and earning prospects. “The bank with its current financial position will be unable to make full payment to its existing depositors,” it said, adding that the continuation of the bank is detrimental to the interests of its depositors. On liquidation, each depositor will be entitled to receive insurance claim amount on his/her deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI said that 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 of June 13, 2024, DICGC has already paid Rs 20.03 crore out of the total insured deposits.
Mahabhairav Sahakari Urban Bank’s license canceled due to financial condition
