RBI cancels licence of Yashwant Co-operative Bank

Mumbai, May 19 (SocialNews.XYZ) The Reserve Bank of India (RBI) on Tuesday cancelled the licence of The Yashwant Co-operative Bank, Phaltan, Maharashtra, as the lender does not have adequate capital and earning prospects.

Consequent to the cancellation of its licence, Yashwant Co-operative Bank is prohibited from conducting the business of banking with effect from the close of business on May 19, 2026, the RBI said in a statement.

The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, has also been directed to issue an order for winding up the bank and appointing a liquidator, the central bank added.

On liquidation of the bank, every depositor would be entitled to receive a deposit insurance claim amount of his or her deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

According to data submitted by the bank, about 99.02 per cent of the depositors are entitled to receive the full amount of their deposits, the RBI said.

As of April 20, the DICGC has already paid Rs 106.96 crore.

The RBI said that Yashwant Co-operative Bank has failed to comply with the Banking Regulation Act and its continuance is prejudicial to the interests of its depositors.

The bank, with its present financial position, would be unable to pay its present depositors in full; and public interest would be adversely affected if the bank is allowed to carry on its banking business any further, the RBI statement said.

Yashwant Co-operative Bank has been prohibited from conducting the business of banking, which includes, among other things, acceptance of deposits and repayment of deposits, with immediate effect, the statement said.

The RBI had, on May 12, cancelled the licence of Sarvodaya Co-operative Bank as it does not have adequate capital and earning prospects.

Source: IANS