The Reserve Bank said that the bank will close the banking business from the close of business on November 12, 2024. Also, the Cooperative Commissioner of Andhra Pradesh and the Registrar of Cooperative Societies have been requested to issue an order to close the bank and appoint a liquidator.

95.8 percent of depositors will get their money

On liquidation, every depositor will be entitled to receive deposit insurance claim amount on deposits up to a limit of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI said, ‘According to the data submitted by the bank, 95.8 percent of the depositors are entitled to receive the full amount of their deposits from DICGC.’ DICGC has paid Rs 9.84 crore out of the total insured deposits till August 31, 2024.

Durga Sahakari Urban Bank was closed due to this reason.

Regarding cancellation of license of Durga Sahakari Urban Bank, RBI said that the bank does not have sufficient capital and earning prospects. It could not follow the rules of Banking Regulation Act, 1949. It said, ‘The continuation of the bank is not good for the interest of its account holders. Due to its current financial position, the bank will be unable to make full payment to its existing depositors.’ After the closure of the bank, 4.2 account holders will not be able to get the entire money deposited by them.

What will be the impact on the account holders?

The impact of the closure of any bank on its account holders depends on the amount deposited in their account. The money deposited in the account of those with deposits up to Rs 5 lakh is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). But those with amounts more than this are sure to suffer losses. All types of deposit accounts of banks are insured by DICGC.

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

This time RBI has canceled the license of UP Co-operative Bank, Sitapur. Earlier on December 4, the license of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, located in Ichalkaranji, Kolhapur, was canceled by the RBI. RBI gave information about this through a press release on 7 December. The bank has stopped doing banking business from December 7, 2023.

You can get an amount up to Rs 5 lakh

After the order of the Reserve Bank, depositors will be able to get an amount up to Rs 5 lakh. This money will be given under DICGC cover. Under this, 98.32 percent depositors will get their entire money. This decision was taken by RBI in view of the poor financial condition. RBI has issued an order to the Cooperative Commissioner and Registrar of Uttar Pradesh to close the bank and appoint a liquidator for the bank.

RBI also said that

RBI said that this action is due to insufficient capital and earning prospects. Also said that the survival of the bank may harm the interests of its depositors. RBI also said that the bank will be unable to make full payments to its existing depositors with the current financial condition. If the bank is allowed to carry on its banking business, public interest will be adversely affected.

The post RBI Cancels Bank License: Big news! Reserve Bank has canceled the license of another bank, check details immediately first appeared on Rightsofemployees.com.

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.