PUNE: The Reserve Bank of India has cancelled the licence of Seva Vikas Sahakari Bank Ltd, Pune. Hence, the bank has stopped all transactions from October 10, 2022. The RBI has also sent a letter to Cooperatives Commissioner and Registrar of Cooperative Societies, Maharashtra regarding its decision to cancel the bank’s licence.
The RBI’s letter says that the bank does not have sufficient capital and there is no likelihood of generating any income. Hence, the norms as per section 56 and section 11(1) and section 22 (3) (d) of Banking Regulation Act, 149 will not be fulfilled. The Seva Vikas Bank has proved unsuccessful in fulfilling norms under sections 22(3) (a), 22(3) (b), 22(3) (c), 22(3) (d) and 22(3) (e). Due to serious financial problems, the bank will not be able to repay full money to its depositors. Hence, if the bank is allowed to carry out its operations, it will adversely affect the public interest.
The bank will not be allowed to accept fresh deposits. Because of liquidation, each depositor will get money up to ₹5 lakh as per Deposit Insurance and Credit Guarantee Corporation (DICGC) norms. According to DICGC Act, 1961 99 per cent of depositors have the right to get their entire money back from DICGC.