The Commissioner for Cooperation and Registrar of Cooperative Societies, Uttar Pradesh has additionally been requested to subject an order for winding up the financial institution and appoint a liquidator, the RBI mentioned in a press release. On liquidation, each depositor can be entitled to obtain deposit insurance coverage declare quantity of his/her deposits as much as ₹5 lakh solely from Deposit Insurance coverage and Credit score Assure Company (DICGC).
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As per the information submitted by the Purvanchal Co-operative Financial institution, about 99.51 per cent of the depositors are entitled to obtain full quantity of their deposits from DICGC, the RBI mentioned. Giving particulars, the RBI mentioned the cooperative financial institution with its current monetary place can be unable to pay its current depositors in full.
“The financial institution doesn’t have sufficient capital and incomes prospects,” it mentioned, and added public curiosity can be adversely affected if the financial institution is allowed to hold on its banking enterprise any additional.
Consequent to the cancellation of its licence, Purvanchal Co-operative Financial institution has been prohibited from conducting the enterprise of ‘banking’ which incorporates, amongst different issues, acceptance of deposits and reimbursement of deposits.
RBI additionally knowledgeable that DICGC (as on Might 30, 2024) has already paid ₹12.63 crore of the entire insured deposits based mostly on the willingness obtained from the depositors involved of the financial institution.
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