CURRENT AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI) has cancelled the license of Millath Co-operative Bank Ltd., Davangere in Karnataka, due to inadequate capital and earning prospects, and its continuance is prejudicial to the interests of its depositors.

Detailed explanation-2: -The Reserve Bank cancelled the licence of the bank as: The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949.

Detailed explanation-3: -In terms of provisions of the DICGC Act, 1961, on cancellation of registration as an insured bank, the Corporation is liable to pay every depositor, the eligible amount subject to the limit of the insurance cover, based on his deposit/s and loans in the bank as on the cut-off date.

Detailed explanation-4: -The bank ceases to carry on banking business, with effect from the close of business on October 10, 2022, RBI said in a statement. Earlier in August 2022 , it had cancelled the license of Pune-based Rupee Cooperative Bank. RBI action is facing legal challenge in Bombay High Court.