RBI cancels licence of Madgaum Urban Co-operative Bank, check what will happen to investors’ money

The RBI said that the Madgaum Urban Cooperative Bank does not have adequate capital and earning prospects and has failed to comply with various provisions of the Banking Regulation Act, 1949. 

The RBI on Thursday cancelled the licence of The Madgaum Urban Co-operative Bank Limited, Margao, Goa, as the bank with its current financial position would be unable to pay its present depositors in full. The RBI further said that as per the data submitted by the bank, about 99 per cent of the depositors will receive full amounts of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The Office of Registrar of Cooperative Societies, Goa, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, the RBI added.