Mumbai : The country's central bank Reserve Bank of India i.e. RBI has given a strong blow to this bank of Ahmedabad today. According to the information, it is being told that the RBI has canceled the license of Color Merchants Co-operative Bank located in Ahmedabad on Wednesday as this bank has no scope for adequate capital and earnings.

The Reserve Bank of India i.e. RBI said in a statement that the registrar of Gujarat cooperative societies has also been requested to issue an order to close the bank and appoint a liquidator for the bank. On liquidation, each depositors deposit will be entitled to the insurance and loan guarantee corporation i.e. DICGC to get an insurance claim amount on its deposit amount up to a monetary capital of just Rs 5 lakh.

The Reserve Bank i.e. RBI further said that according to the data presented by the cooperative bank, about 98.51 percent deposits are entitled to receive the entire amount of their savings amount from DICGC. By March 31, 2024, DICGC has already paid Rs 13.94 crore to the bank deposits. Describing the reason behind the cancellation of the license, the Reserve Bank said that the bank does not have enough capital and earnings possibilities.

The Cooperative Bank has also failed to follow certain requirements under the Banking Regulation Act. The Reserve Bank has said that the continuation of the bank is harmful to the interests of depositors. With its current financial condition, the bank will be unable to make full payment to its deposits.

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The Reserve Bank i.e. RBI also said that if the bank is allowed to continue its banking business even further, it will adversely affect the public interest. After the license is canceled, the cooperative bank will stop the banking business business on Wednesday i.e. April 16, 2025. Banking businesses include accumulation and repayment of deposits among other things.