RBI cancels licence of Nashik Girna Sahakari Bank

RBI cancels licence of Nashik Girna Sahakari Bank

The Reserve Bank of India (RBI) has cancelled the licence of Nashik Girna Sahakari Bank, a cooperative bank in Nashik. This step has been taken due to inadequate capital and earnings prospects, which have jeopardized the interests of the depositors. The bank had also violated banking norms and failed to submit a viable revival plan despite repeated reminders from the regulator. The cancellation of the licence means that the bank will no longer be able to carry on the business of banking. The RBI has directed the bank to stop all banking operations and has appointed a liquidator to protect the interests of the depositors. The depositors will be allowed to withdraw up to Rs 5 lakh from their accounts depending on the available balance. The loss of licence is a major blow to the bank and its depositors, as it will lead to a complete shutdown of the bank and loss of jobs for the employees. The RBI has been cracking down on cooperative banks with weak financials and irregularities in recent years to protect the interests of depositors and maintain the stability of the banking system.

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TIS Staff

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