RBI cancels licence of Shri Anand Co-operative Bank due to lack of capital

RBI on Thursday said it has cancelled the license of Shri Anand Co-operative Bank, Chinchwad, Pune as the lender does not have adequate capital and cannot pay its present depositors in full.

The bank ceases to carry on banking business, with effect from the close of business on Thursday (July 7, 2022), the Reserve Bank of India (RBI) said in a statement.

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

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 Deposit Insurance and Credit Guarantee Corporation (DICGC), RBI added.

"Consequent to the cancellation of its license, 'Shri Anand Co-operative Bank Ltd, Chinchwad, Pune' is prohibited from conducting the business of banking which includes, among other things, acceptance of deposits and repayment of deposits...with ...