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Bank License Cancelled: RBI has cancelled licence of 11 co-operative banks in 2024 – Check List here

Jyoti — Mon, 30 Dec 2024 07:30:38 +0000

Bank License Cancelled: Keeping in mind the interests of the customers, the Reserve Bank of India has been taking strict action against the banks that have violated the rules. Something similar was done this year and the license of 11 banks was cancelled.

In fact, RBI cancels the license of those cooperative banks which do not have sufficient keys. All these banks could not guarantee repayment to the depositors. Due to which the license of these banks has been canceled for the safety of money.

Action taken on these banks in 2024

Uravakonda Co-operative Town Bank Ltd., Andhra Pradesh
Jai Prakash Narayan Nagari Sahakari Bank Ltd., Basmathnagar, Maharashtra
The Mahabhairab Co-operative Urban Bank Ltd., Tezpur, Assam
The City Co-operative Bank Limited, Mumbai, Maharashtra
The Hiriyur Urban Co-operative Bank Ltd. Hiriyur, Karnataka
Durga Co-operative Urban Bank Ltd., Vijayawada, Andhra Pradesh
Purvanchal Co-operative Bank Ltd., Ghazipur, UP
The Banaras Mercantile Co-operative Bank Ltd., Varanasi
Shimsha Cooperative Bank Ltd, Maddur, Mandya, Karnataka
Shri Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi, Gujarat
Sumerpur Mercantile Urban Co-operative Bank Ltd., Sumerpur, Pali Rajasthan

What will be the impact on the account holder?

Whenever RBI closes a bank, its impact on the account holders will be only as much as the amount deposited in their account. Those who have a deposit amount of up to Rs 5 lakh in their account can avail the loan through Deposit Insurance and Credit Guarantee Corporation.

There is a rule in India. If a bank closes down, you will get back your money up to Rs 5 lakh in that bank. This work is done by an organization called Deposit Insurance and Credit Guarantee Corporation. On the other hand, if you have more than Rs 5 lakh deposited in a bank and the bank closes down, you will not get that much money back. That means you may suffer a loss.

DICGC insures all types of bank accounts. Meaning, whether your account is a savings account, current account or any other type of account, if the bank closes down, you will get back up to Rs 5 lakh.

Reserve Bank has issued new rules for co-operative banks, approval will have to be taken before changing the name

Pravesh Maurya — Mon, 30 Oct 2023 20:05:00 +0000

RBI Decision: Under the Banking Regulation Amendment Act 2020, the new rule related to changing the names of co-operative banks has been implemented by RBI today by issuing a notification.

The country’s central bank and bank regulator Reserve Bank of India has today implemented new rules for co-operative banks. Under this, no co-operative bank can change its name. They can change their name only if RBI tells them in writing that it has no objection to changing the name of the bank.

RBI issued guidelines

Until the Reserve Bank certifies that there is no objection to such a change, it can be maintained. Therefore, RBI has decided to issue guidelines regarding the process to be done. (CRCS)/Registrar of Cooperative Societies (RCS) will not be indicated for its approval.

RBI has made it clear in its notification that these guidelines will come into effect as soon as this circular is issued. Sections 49B and 49C of the Banking Regulation Act (BR Act) 1949 apply to cooperative banks. The rules of its section 49B are applicable to the Central Registrar of Cooperative Societies.

RBI also issued a clarification

Apart from this new rule, RBI has also issued a clarification and this is also related to cooperative banks. These guidelines have been issued for all District Central Co-operative Banks (DCCBs). From now on, District Central Cooperative Banks will require written approval of RBI for opening new offices, opening new branches, installing ATMs and changing the location of their offices.

Similarly, RBI has made it clear that according to the Banking Regulation Act 1949 (which is applicable to District Central Co-operative Banks), information will have to be given to the Reserve Bank for opening new places of business and information about change of location will also have to be given. Actually, RBI was receiving complaints in this regard for some time and there was a demand that RBI should issue clarification regarding these.

DCCBs will need written approval from RBI

After examining some matters related to this matter, RBI has decided that DCCBs will need written approval from RBI for opening new branches, opening new offices or expanding branches in the same city, village or town. For this, guidelines are being issued which DCCBs will have to follow. This circular is applicable to all District Central Co-operative Banks.

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Bank License Cancelled: RBI again canceled the license of this bank today, 5 banks license canceled this month

Pravesh Maurya — Thu, 20 Jul 2023 04:01:56 +0000

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.