Reserve Bank of India cancels the license of Millath Co-operative Bank Limited, Davangere, Karnataka the bank ceases to carry on banking business, with effect from the close of business on June 18, 2022 and Prohibited from conducting the banking business which includes, acceptance of deposits and repayment of deposits
The Reserve Bank cancelled the license of the bank because the bank does not have adequate capital and earning prospects and does not comply with the provisions of the Banking Regulation Act. Continuance of the bank is prejudicial to the interests of its depositor the present financial position of bank would be unable to pay its present depositors in full and Public interest would be adversely affected if the bank is allowed to carry on its banking business any further. 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 subject to the provisions of DICGC Act.
