The Reserve Bank has canceled the license of Raigad based Karnala Nagari Sahakari Bank Limited in Maharashtra. In a press release, RBI said the bank has been directed to cease all its operations from 13th August.
As informed by the Reserve Bank of India, the license of Karnala Nagari Sahakari Bank was canceled due to insufficient capital and earning prospects and its continuance would have adversely affected depositors. RBI has added that 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 bank. RBI has informed that 95 percent of the depositors will receive full amounts of their deposits from Deposit Insurance and Credit Guarantee Corporation. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Five lakh rupees.