Solapur-based Laxmi Co-op Bank loses licence after failing RBI norms

Depositors to get insurance claim, amount of Rs 193.68 cr already paid out

Solapur-based Laxmi Co-operative Bank ceased operations from Thursday after the Reserve Bank of India (RBI) cancelled its licence for not having adequate capital and earning prospects.

The RBI has requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, to issue an order for winding up the bank and appoint a liquidator for the bank.

On liquidation, every depositor would be entitled to receive insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). About 99 per cent of the bank’s depositors are entitled to