RBI cancels licence of Shri Anand Co-operative Bank due to lack of capital

Current Context: RBI has canceled the license of Shri Anand Co-operative Bank, it does not have adequate capital and cannot pay its present depositors in full.

• It does not comply with the provisions of the Banking Regulation Act, 1949.
• Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has been asked to issue an order for winding up the bank and appoint a liquidator for the bank.
• Every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs 5 lakh from DICGC.
• More than 99 percent of the depositors are entitled to receive the total amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC).