Page 21 - Banking Finance August 2024

Uttarakhand to give 33% RBI cancels licence of nancial position. "Consequently, the bank
ceases to carry on banking business, with
reservation to women in Karnataka-based Shimsha effect from the close of business on July

cooperative institutions Sahakara Bank Niyamitha 04, 2024," the Reserve Bank of India said
An order giving 33 per cent reservation The RBI has cancelled the licence of while cancelling the licence.
to women in cooperative institutions Shimsha Sahakara Bank Niyamitha, The Commissioner for Cooperation and
was issued by the Uttarakhand govern- Maddur (Karnataka) in the wake of its Registrar of Cooperative Societies,
ment here. The decision was taken at worsening financial position. Conse- Uttar Pradesh has also been requested
quently, the bank ceases to carry on to issue an order for winding up the
a meeting of the state cabinet chaired banking business, with effect from the
here recently by Chief Minister Pushkar bank and appoint a liquidator.
close of business on July 05, 2024, the
Singh Dhami and will end the monopoly As per the data submitted by the bank,
Reserve Bank said in a statement.
of men in cooperative institutions, an 99.98 per cent of the depositors are
official release said. The Registrar of Cooperative Societies, entitled to receive full amount of their
Karnataka has also been requested to deposits from Deposit Insurance and
The order issued on International Co- issue an order for winding up the bank Credit Guarantee Corporation (DICGC),
operative Day will ensure the partici- and appoint a liquidator for the bank. the RBI said. On liquidation, every de-
pation of women in 10 district coopera- On liquidation, every depositor would positor would be entitled to receive a
tive banks, 670 multipurpose coopera- be entitled to receive deposit insurance deposit insurance claim amount of his/
tive societies and other top coopera- claim amount of his/her deposits up to her deposits up to Rs 5 lakh from
tive institutions in the state, an official Rs 5 lakh from Deposit Insurance and DICGC. Giving details, the RBI said the
release said. Credit Guarantee Corporation (DICGC).
cooperative bank does not have ad-
Women will also get the quota in As per the data submitted by the bank, equate capital and earning prospects,
Uttarakhand State Cooperative Bank, RBI said about 99.96 per cent of the and its continuance is prejudicial to the
State Cooperative Federation, Housing depositors are entitled to receive the interests of its depositors.
full amount of their deposits from the
and Construction Cooperative Federa- "The bank with its present financial
tion, Regional Co-operative Union, DICGC. position would be unable to pay its
Consumer Cooperative Federation, and present depositors in full," it said.
Silk Federation among others, it said. RBI cancels licence of
Varanasi-based Banaras As on April 30, DICGC has already paid
State Cooperative Minister Dhan Singh Rs 4.25 crore of the total insured de-
Rawat said it was a historic decision by Mercantile Co-op Bank posits under the provisions of the
the state government which will prove The RBI has cancelled the licence of DICGC Act based on the willingness
to be a milestone in the direction of Banaras Mercantile Co-operative Bank, received from the concerned deposi-
women's empowerment. Varanasi in the wake of its worsening fi- tors of the bank.

BANKING FINANCE | AUGUST | 2024 | 19