RBI has canceled the license of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited located in Ichalkaranji, Kolhapur. This step has been taken by the Central Bank because the bank does not have sufficient capital and earning potential.

In a statement from RBI, it was said that ‘The bank has stopped banking operations from the close of business on December 4, 2023.’ According to the data filed by the bank, 99.85 percent of the bank’s depositors are entitled to get the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). While canceling the license of the bank, RBI said, ‘The bank does not have sufficient capital and earning potential. The co-operative bank with its current financial position will be unable to make full payments to its current depositors.

99.85 percent depositors will be able to get the entire deposit amount.

The Reserve Bank said that if the United India Co-operative Bank is allowed to carry forward its banking business, then public interest will be adversely affected. The bank with its current financial position will be unable to make full payments to its current depositors.

Let us tell you that under DICGC rules, every depositor of the bank will be entitled to receive the deposit insurance claim amount of his deposits up to the monetary limit of Rs 5 lakh. According to the data presented by the bank, 99.85 percent depositors are entitled to receive their entire deposit amount.

It was also informed by RBI that till July 24, DICGC has already paid the total insured deposits of Rs 41.60 crore under the provisions of Section 18A of the DICGC Act, 1961, based on the wishes of the respective depositors of the bank. Earlier, the Reserve Bank had imposed fine on four cooperative banks for not following the rules.

These co-operative banks are Jijamata Mahila Co-operative Bank Limited, Shri Lakshmikripa Urban Co-operative Bank Limited, The Konark Urban Co-operative Bank Limited and The Chembur Nagarik Co-operative Bank Limited.

The post Bank License Cancelled: RBI canceled the license of this bank, check details first appeared on Rightsofemployees.com.

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.

The post Bank License Cancelled: RBI again canceled the license of this bank today, 5 banks license canceled this month first appeared on Rightsofemployees.com.

It was told by the Reserve Bank of India that the customers who have deposited money in this bank will not be able to withdraw money from tomorrow. In the last days, RBI had taken action against many banks and financial institutions.

The financial condition of the bank is not good, RBI had canceled the license of Pune-based Rupee Co-operative Bank Limited in August. Banking services will be closed after the implementation of this decision of RBI on 22nd September. In the notice issued by RBI, it was told that the financial condition of the bank is not good.

The reason for canceling the license was told by the Reserve Bank that the bank will close its business on 22 September. After this, bank customers will neither be able to deposit money nor withdraw from the account.

Apart from this, no financial transactions will be done. It was told by RBI that the bank does not have capital and there is no possibility of earning further. This is the reason for canceling the license of the bank.

What will happen to customers’ money?

All the customers whose money is deposited in this bank will get an insurance cover of Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme of RBI. According to this rule, if a bank is closed due to bad financial condition, then the customer gets the benefit of insurance cover on deposits up to Rs 5 lakh through DICGC. This money is given to the concerned customer.

The post Reserve Bank of India: This bank will be closed from tomorrow, what will happen to the money of the customers? check details first appeared on Rightsofemployees.com.

The Deposit Insurance and Credit Guarantee Corporation (DICGC) will make payments to eligible depositors of 17 cooperative banks, including eight in Maharashtra, in October. It is worth noting that these are the 17 Co-Operative Banks which the Reserve Bank of India (RBI) had imposed several restrictions, including withdrawals by depositors, in July in view of the deteriorating financial situation.

Deposit up to Rs 5 lakh cover

DICGC, a wholly owned subsidiary of RBI, provides insurance cover on bank deposits up to Rs 5 lakh. Of these 17 co-operative banks, eight are located in Maharashtra, four in Uttar Pradesh, two in Karnataka and one each in New Delhi, Andhra Pradesh and West Bengal.

These banks are: Co-operative Banks of Maharashtra… Sahebrao Deshmukh Co-operative Bank, Sangli Co-operative Bank, Raigad Co-operative Bank, Nashik District Girna Co-operative Bank, Saibaba Janata Sahakari Bank, Anjangaon Surji Nagari Sahakari Bank, Jaiprakash Narayan Nagari Sahakari Bank and Karmala Urban Co. There are operative banks.

According to the DICGC, payments were made to eligible depositors of Uttar Pradesh-based Lucknow Urban Co-operative Bank, Urban Co-operative Bank (Sitapur), National Urban Co-operative Bank (Bahraich) and United India Company Co-operative Bank (Nagina) in October. will go.

Karnataka Shree Mallikarjuna Pattana Sahakari Bank Regularya (Musky) and Shree Sharada Mahila Sahakari Bank (Tumkur) are also included in this list.

Eligible depositors of Ramgarhia Co-operative Bank in New Delhi, Suri Friends Union Co-operative Bank in Suri, Birbhum, West Bengal and Durga Co-operative Urban Bank in Vijayawada, Andhra Pradesh will be paid by DICGC in October. The DICGC said that the eligible depositors will have to support their claims by valid documents of identity.

The post Banks Deposit Refunds: Money will be refunded to the account holders of these banks, see details first appeared on Rightsofemployees.com.