The bank failed due to insufficient capital
The RBI said that Lakshmi Sahakari Bank is not in a position to repay the entire amount of existing depositors as there is insufficient capital available. Announcing the cancellation of the bank’s licence, RBI Bank said that 95 per cent of the depositors will be given their entire deposits through the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per the details provided by the bank. If the bank goes bankrupt, every depositor has the right to claim insurance on the deposit amount under the new rules, up to a limit of five lakhs.
Lakshmi Sahakari Bank has been in trouble since the time of Corona
The Lakshmi Co-operative Bank had a loan of 275 crores. 325 crores deposits, it has been decreasing and the bank administrators have already admitted that the NPA has increased by 40 crores this year compared to last year. Sanjay Vasant Ekbote, Chairman of D.Lakshmi Co-operative Bank, gave the reason that Kovid-19 caused the increase in NPA of the bank.
An administrator was appointed on November 13, 2021 by Reserve Bank of Lakshmi Co-operative Bank due to cash shortage. 216 crore deposits were outstanding after the administration of the bank. 202 crore of these deposits were within five lakhs. As they have insurance coverage, a claim was filed from them. On September 22, 2022, the Reserve Bank of India has canceled the license of The Lakshmi Sahakari Cooperative Bank, Solapur.
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