Karad Janata Sahakari Bank

Karad Janata Sahakari Bank

Question : RBI has recently cancelled the licence of The Karad Janata Sahakari Bank Ltd. In which district Karad situated in Maharashtra ?
(a) Satara
(b) Nagpur
(c) Nasik
(d) Jalgaon
Answer (a)
Related facts

  • The RBI on Tuesday(8 December 2020) said it has cancelled the licence of The Karad Janata Sahakari Bank Ltd, Karad, Maharashtra.

Reason

  • Bank does not have adequate capital and earning prospects.

Involvement of DICGC

  • More than 99 per cent of the depositors of the bank will get full payment of their deposits from DICGC.
  • DICGC stands for Deposit Insurance and Credit Guarantee Corporation.
  • It is a wholly owned subsidiary of Reserve Bank of India.
  • On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions.

By — Pankaj Pandey.

Link:
https://economictimes.indiatimes.com/industry/banking/finance/banking/reserve-bank-of-india-cancels-license-of-maharashtras-karad-janata-sahakari-bank/articleshow/79627922.cms?from=mdr