RBI has canceled the license of The Kapol Co-operative Bank Limited (Mumbai, Maharashtra). The order has also been issued on Monday 25th September. From today the bank will not be allowed to do transactions.

Why did RBI cancel the bank’s license?

RBI said that this cooperative bank has adequate capital and earning potential. The Kapol Co-operative Bank Limited is also unable to make full payments to its depositors with the current financial situation. In this situation, there is a violation of the provisions of Section 11 (1), Section 22 (3) (d) along with Section 56 of the Banking Regulation Act 1949. Apart from this, the Reserve Bank said, “The survival of the bank is harmful for its depositors.” The bank will no longer be allowed to accept deposits and repay deposits.

What will happen to customers’ money?

The license of this cooperative bank located in Mumbai has been cancelled. Despite this, each depositor can claim deposits up to Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC). Claiming more deposit amount than this will not be allowed. According to the data, currently about 96.09% customers are entitled to receive the full amount of deposits from DICGC.

The post Bank License: RBI canceled the license of another bank, transactions banned from September 25 first appeared on Rightsofemployees.com.

After imposing penalty on HDFC and HSBC Bank in the past, RBI has now canceled the licenses of two cooperative banks operating in Maharashtra and Karnataka. Also, both the banks have been asked not to do any kind of banking business after the cancellation of the license on July 5, 2023.

Will not be able to accept any type of deposit 

It was informed by the RBI that the banking licenses of Buldhana-based Malkapur Urban Co-operative Bank Ltd. and Bengaluru-based Sushruti Souharda Sahakar Bank Regular (Shushruti Souharda Sahakara Bank Niyamita) have been cancelled. According to the statement, after the closure of the business, both the banks will not be able to accept any kind of deposits nor will they be able to give deposits to the customers.

What will happen to those who deposit money? 

This step has been taken by the central bank in view of the lack of adequate capital and earning potential of both the cooperative banks. The Reserve Bank has asked the Cooperative Commissioner and Registrar of Cooperative Societies, Maharashtra to issue an order for winding up the bank and appoint a liquidator for the bank. The Reserve Bank said that every depositor will be entitled to receive the deposit insurance claim amount of his deposit up to a limit of five lakh rupees from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

According to the data presented by the bank, 97.60% of the depositors are entitled to receive the full amount of their deposits from DICGC. RBI said that if Malkapur Urban Cooperative Bank is allowed to carry on banking business, it will affect public interest. In the coming times, the bank will be unable to make full payments to its depositors with the current financial condition.

The post Bank License Cancelled: RBI canceled the license of 2 banks, transaction banned from this day first appeared on Rightsofemployees.com.

After imposing penalty on HDFC and HSBC Bank in the past, RBI has now canceled the licenses of two cooperative banks operating in Maharashtra and Karnataka. Also, both the banks have been asked not to do any kind of banking business after the cancellation of the license on July 5, 2023.

Will not be able to accept any type of deposit

It was informed by the RBI that the banking licenses of Buldhana-based Malkapur Urban Co-operative Bank Ltd. and Bengaluru-based Sushruti Souharda Sahakar Bank Regular (Shushruti Souharda Sahakara Bank Niyamita) have been cancelled. According to the statement, after the closure of the business, both the banks will not be able to accept any kind of deposits nor will they be able to give deposits to the customers.

What will happen to those who deposit money?

This step has been taken by the central bank in view of the lack of adequate capital and earning potential of both the cooperative banks. The Reserve Bank has asked the Cooperative Commissioner and Registrar of Cooperative Societies, Maharashtra to issue an order for winding up the bank and appoint a liquidator for the bank. The Reserve Bank said that every depositor will be entitled to receive the deposit insurance claim amount of his deposit up to a limit of five lakh rupees from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

According to the data presented by the bank, 97.60% of the depositors are entitled to receive the full amount of their deposits from DICGC. RBI said that if Malkapur Urban Cooperative Bank is allowed to carry on banking business, it will affect public interest. In the coming times, the bank will be unable to make full payments to its depositors with the current financial condition.

The post Bank License Cancelled: RBI canceled the license of 2 banks, Ban on transactions from this day first appeared on Rightsofemployees.com.

Apart from this, on Monday (January 24) also, the central bank had imposed heavy penalties on four banks. In this sequence, RBI has now canceled the banking license of Kerala-based Adoor Co-operative Urban Bank. It has been allowed to work as a non-banking institution (NBFC) by the Central Bank.

Notification effective from April 24, 2023

According to the notification issued by RBI, the cancellation of the bank’s license has become effective from the close of business on April 24, 2023. On behalf of the Reserve Bank, it was said that Adoor Co-operative Urban Bank Limited was given a banking license on January 3, 1987 for banking business in India under the Banking Regulation Act. The notification of cancellation of the bank’s license has become effective from the close of business on April 24, 2023.

Bank will work like NBFC

In the notification issued by RBI, the bank has been asked to stop operating banking activities with immediate effect. According to RBI, the major difference between a bank and an NBFC is that a bank is an institution authorized by the government to provide banking services to the people. At the same time, NBFC is a company providing banking services to people without a bank license.

Earlier, the Reserve Bank (RBI) has canceled the license of 8 banks in the financial year ended on 31 March. Adoor Co-operative Urban Bank is the first case of cancellation of license in the new financial year. In the information given by RBI, it was told that the licenses of eight co-operative banks have been canceled in the financial year 2022-23 ending on 31 March. Reserve Bank has also imposed penalty 114 times on these banks for not following the rules.

What will happen to the customers’ money?

Account holders whose money is deposited in Adoor Co-operative Urban Bank will get the benefit of insurance cover on deposits up to Rs 5 lakh. This insurance is available from the Insurance and Credit Guarantee Corporation (DICGC). DICGC is a subsidiary of the Reserve Bank, which provides financial security to the customers of the Co-operative Bank. Customers having deposits of Rs 5 lakh or less with Adoor Co-operative Urban Bank will get full claim from DICGC. But such customers who have more than Rs 5 lakh deposited in their account, they will not be able to get the full amount.

The post Bank License Canceled: RBI issued notification! RBI canceled the license of this bank again, check immediately first appeared on Rightsofemployees.com.

The effect of this is that the RBI even canceled the licenses of some banks. Not only this, the central bank has also imposed heavy fines on some big banks. Co-operative banks are facing the maximum loss in the Reserve Bank’s action.

Reserve Bank also imposed penalty 114 times

The licenses of eight co-operative banks have been canceled by the RBI in the financial year 2022-23 ending on March 31. Reserve Bank has also imposed penalty 114 times on these banks for not following the rules. Let us tell you that banking service has expanded rapidly in rural areas through co-operative banks. But due to the irregularities coming to the fore in these banks, RBI had to take drastic steps.

Allegations of negligence in rules

Co-operative banks are facing interference from local leaders apart from dual regulation and weak finance. The Reserve Bank has started cracking down on co-operative banks, which are negligent in the rules. Permits of eight banks have been canceled in the last one year. Let us know which banks’ permits were canceled by RBI?

Licenses of these banks were canceled

1. Mudhol Co-operative Bank
2. Milath Co-Operative Bank
3. Shree Anand Co-Operative Bank
4. Rupee Co-operative Bank
5. Deccan Urban Co-operative Bank
6. Laxmi Co-operative Bank
7. Sewa Vikas Co-operative Bank
8. Babaji Date Mahila Urban Bank

The licenses of the banks mentioned above by the RBI were done due to insufficient capital, non-compliance with the rules of the Banking Regulation Act. Also canceled due to reasons like lack of future income possibilities. Co-operative banking sector is being monitored by RBI for the last several years. The central bank has canceled the licenses of 12 co-operative banks in the year 2021-22, 3 co-operative banks in 2020-21 and two co-operative banks in 2019-20.

The post RBI Canceled Bank License: Bank Customers Alert! RBI canceled the license of these 8 banks, will not be able to do transactions first appeared on Rightsofemployees.com.

The bank will be closed on September 22, let us tell you that the licenses of many banks and financial institutions have been canceled so far by the RBI. At the same time, now the Reserve Bank has decided to cancel the license of another bank. After this decision of RBI, this bank will be closed from 22 September i.e. from this month.

RBI canceled the license

RBI had decided to cancel the license of Pune-based Rupee Co-operative Bank Limited in August. Let us tell you that after the decision of RBI, the banking services of this bank will be closed from September 22, this is important news for all the customers whose money is in this bank.

Why was the license cancelled?

The Reserve Bank has told that the bank will close its business on 22 September. After this, customers will neither be able to deposit nor withdraw their money. Apart from this, you will not be able to do any kind of financial transaction. RBI said that the bank does not have sufficient capital and further earning prospects. For this reason the license of this bank is being canceled.

5 lakh will not comply with the provisions of Section 11(1) and Section 22(3)(d) of the Banking Regulation Act, 1949 as per the rules of the Reserve Bank. The bank has failed to comply with sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e). Subject to the provisions of the DICGC Act, 1961, each of the depositors shall be entitled to receive a deposit insurance claim amount up to ₹ 5,00,000 (Rupees five lakhs).

The post Big Alert ! This bank will be closed from September 22, customers will not be able to withdraw money, check details Quickly first appeared on Rightsofemployees.com.