The license of Lakshmi Co-operative Bank was cancelled, now how will the customers get their deposits back?

The Reserve Bank of India (RBI) on Thursday canceled the license of The Lakshmi Co-operative Bank based in Maharashtra. The reason behind this has been attributed by the central bank to lack of adequate capital.

The Reserve Bank of India (RBI) on Thursday canceled the license of The Lakshmi Co-operative Bank based in Maharashtra.

The Reserve Bank of India (RBI) on Thursday canceled the license of The Lakshmi Co-operative Bank based in Maharashtra. The reason behind this has been attributed by the central bank to lack of adequate capital. On liquidation, every depositor will be able to get a deposit insurance claim amount up to Rs 5 lakh.

How to get back customers’ money

The deposit amount of customers in the bank will now be available through Insurance and Credit Guarantee Corporation. According to the Reserve Bank, after liquidation, every depositor will be able to get a claim under insurance on his deposit up to the limit of Rs 5 lakh. However, for this the depositors will have to apply to get the money back. According to the Reserve Bank, according to the bank’s data, 95 percent of the depositors’ deposits are within this claim range. In this case, they will get their full amount back.

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