The Seva Vikas Co-operative Bank Ltd., with offices in Pune, has had its licence revoked by the Reserve Bank of India (RBI). According to the central bank, the licence was revoked due to the company’s lack of cash and uncertain earnings prospects.
By order dated October 10, 2022, the Reserve Bank of India (RBI) has now revoked the licence of “The Seva Vikas Co-operative Bank Ltd., Pune, Maharashtra.” As a result, the bank stops conducting banking business as of the close of business on October 10, 2022, according to an official announcement.
According to the RBI, an order to wound up the bank and name a liquidator have also been obtained from the Commissioner for Cooperation and Registrar of Cooperative Societies in Maharashtra.
According to the announcement, the bank’s licence was revoked by the RBI because it lacked sufficient capital and future revenue opportunities. Therefore, it does not adhere to the rules of Sections 11(1) and 22(3)(d) read in conjunction with Section 56 of the Banking Regulation Act, 1949.
According to the RBI, the bank has not complied with Sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d), and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949.
With immediate effect, the Seva Vikas Co-operative Bank Ltd., Pune, Maharashtra, has been forbidden from conducting “banking” as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949, which includes, among other things, accepting deposits and repaying deposits. This prohibition follows the cancellation of the bank’s licence.
Every depositor would be entitled to collect the deposit insurance claim amount of his or her deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC), pursuant to the DICGC Act, 1961, up to a financial limit of 5,00,000. Approximately 98% of depositors have the right to receive the full amount of their savings from DICGC, according to information provided by the bank.
