The Reserve Bank of India (RBI) has cancelled the license of Vasantdada Nagari Sahakari Bank Ltd., Osmanabad to carry on banking business, with effect from the close of business on January 11.
Due to the current financial situation, the bank will not be able to repay all the money of the account holders and depositors. The bank's license will be revoked after the transaction ends on Monday. After this, the bank will not be able to conduct any transactions, the RBI said.
Reassuring the bank's depositors, the RBI said the process of revoking the license of Vasantdada Nagari Sahakari Bank and returning the money to the customers would be started only after the liquidation process is completed. After this, depositors will be able to withdraw up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation. More than 99 per cent of the depositors of the bank will get full repayment of their deposits from DICGC, the RBI said