New Delhi: The RBI on Wednesday, February 27, cancelled the licence of Sarjeraodada Naik Shirala Sahakari Bank, Sangli, Maharashtra, as it did not have adequate capital and earning prospects.


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With cancellation of the licence, Sarjeraodada Naik Shirala Sahakari Bank Ltd has ceased to carry on banking business with effect from the close of business hours on Wednesday, the Reserve Bank said in a statement.


The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the lender, it said.


On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).


"As per the data submitted by the bank, more than 99 per cent of the depositors are entitled to receive full amount of their deposits from DICGC," the RBI added.


Giving details about the licence cancellation, the RBI said Sarjeraodada Naik Shirala Sahakari Bank does not have adequate capital and earning prospects, and with its present financial position would be unable to pay its present depositors in full.


"Public interest would be adversely affected if the bank is allowed to carry on its banking business any further," it said. Also Read: Fitbit recalls over 1 million of its Ionic smartwatches on burn hazard worries


As on January 27, 2022, DICGC had sanctioned Rs 64.70 crore of the total insured deposits based on the willingness received from the concerned depositors of the bank. Also Read: Apple iPhone SE available at Rs 15,599 on Flipkart ahead of iPhone SE 3rd gen launch


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