RBI suspends license of Millath Co-operative Bank

[Navjot Singh]

RBI suspends license of Millath Co-operative Bank due to inadequate capital

The Reserve Bank of India (RBI) announced on June 18 that Millath Co-operative Bank Ltd., Davangere, Karnataka, had its license suspended leading to a shortage of capital.

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The Reserve Bank of India (RBI) announced on June 18 that Millath Co-operative Bank Ltd., Davangere, Karnataka, had its license suspended leading to a shortage of capital. As a result, the bank will cease to conduct banking operations on June 18, 2022, at the close of business.

RBI has further added that on liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961.