Reserve Bank of India: The central bank said that every depositor will be entitled to receive his deposits up to a limit of Rs 5 lakh under an insurance claim from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Once the license of another bank has been canceled by the Reserve Bank of India (RBI) for negligence in compliance with the rules. This time the license of UP’s cooperative bank United India Cooperative Bank Ltd has been canceled by the RBI. This step has been taken after the bank does not have enough capital and is expected to have less earning potential.
Will be able to get deposits up to 5 lakhs
In a statement issued by the RBI, it was said that due to the cancellation of the license, the bank will not be able to do business from Wednesday evening. The central bank said that every depositor would be entitled to receive his deposits up to a limit of Rs 5 lakh under an insurance claim from the Deposit Insurance and Credit Guarantee Corporation (DICGC). Let us tell you that deposits up to Rs 5 lakh of each account holder deposited in banks are insured by DICGC. Deposits of all banks including commercial banks, local area banks, regional and co-operative banks are covered under the insurance scheme of DICGC.
License of 5 co-operative banks canceled so far
In the current financial year, the license of five co-operative banks has been canceled by RBI so far. The license of all five banks has been canceled in the month of July itself. Earlier, on July 11, the central bank had taken action against Shri Sharda Mahila Sahakari Bank in Tumkur, Karnataka and Harihareshwar Bank in Satara, Maharashtra. On the other hand, from July 5, the banking licenses of Buldhana-based Malkapur Urban Cooperative Bank Limited and Bengaluru-based Sushruti Souharda Sahakar Bank Regular were cancelled.
