The Cooperative Commissioner of Uttar Pradesh and the Registrar of Cooperative Societies have also been requested to issue an order to close the bank and appoint a liquidator. The central bank said that as per the data submitted by the bank, 99.98 per cent of the depositors are entitled to receive their entire deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

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On liquidation, every depositor will be entitled to receive a deposit insurance claim amount of up to Rs 5 lakh on his deposits from the DICGC. The RBI said that the cooperative bank does not have adequate capital and earning prospects and its continuation is not in the interest of its depositors.

The Reserve Bank said, “Due to its current financial position the bank will be unable to make full payment to its depositors.” DICGC has already paid Rs 4.25 crore out of the total insured deposits under the provisions of the DICGC Act on the basis of wishes received from the concerned depositors of the bank till April 30.

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This time RBI has canceled the license of UP Co-operative Bank, Sitapur. Earlier on December 4, the license of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, located in Ichalkaranji, Kolhapur, was canceled by the RBI. RBI gave information about this through a press release on 7 December. The bank has stopped doing banking business from December 7, 2023.

You can get an amount up to Rs 5 lakh

After the order of the Reserve Bank, depositors will be able to get an amount up to Rs 5 lakh. This money will be given under DICGC cover. Under this, 98.32 percent depositors will get their entire money. This decision was taken by RBI in view of the poor financial condition. RBI has issued an order to the Cooperative Commissioner and Registrar of Uttar Pradesh to close the bank and appoint a liquidator for the bank.

RBI also said that

RBI said that this action is due to insufficient capital and earning prospects. Also said that the survival of the bank may harm the interests of its depositors. RBI also said that the bank will be unable to make full payments to its existing depositors with the current financial condition. If the bank is allowed to carry on its banking business, public interest will be adversely affected.

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