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Maharashtra’s Laxmi Co-operative Bank’s Licence Cancelled, Depositors Can Claim Up To Rs 5 Lakh

RBI has revoked the license of Maharashtra’s Laxmi Co-operative Bank.

The Reserve Bank of India (RBI) has today revoked the license of Maharashtra’s Laxmi Co-operative Bank Limited as the Solapur-based lender lacks sufficient capital and income and fails to comply with regulations.

The order takes effect from today itself.

The RBI said in a statement: “Laxmi Co-operative Bank Limited, Solapur, Maharashtra is prohibited from conducting ‘banking’ which includes, among other things, the acceptance of deposits and refund of deposits as defined in Section 5(b) ) read with section 56 of the Banking Regulation Act, 1949 with immediate effect.”

The RBI has instructed the Commissioner for Cooperation and Registrar of Cooperatives, Maharashtra, to issue an order for the dissolution of the bank and to appoint a liquidator for the bank.

It said that upon liquidation, any depositor would be entitled to a deposit guarantee claim of up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation, or DICGC.

According to the data submitted by the bank, 99 percent of depositors are entitled to receive the full amount of their deposits from DICGC.

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