RBI has cancelled licence of 7 co-operative banks since Jan: Here's why

The RBI has revoked Banaras Mercantile Co-operative Bank's licence due to inadequate capital and poor financial health, effective July 4, 2024. The bank's continuance posed a risk to depositors. The Commissioner for Cooperation and Registrar of Cooperative Societies, Uttar Pradesh, will initiate the winding-up process and appoint a liquidator. Nearly all depositors are entitled to full reimbursement from the Deposit Insurance and Credit Guarantee Corporation (DICGC), with up to Rs 5 lakh per depositor guaranteed.