Bank Cancelled License: Reserve Bank has cancelled the license of this bank, Customer withdraws money immediately

Pravesh Maurya — Thu, 25 Jul 2024 05:23:56 +0000

RBI Cancelled License of Bank : Reserve Bank has cancelled the license of another bank. Due to cancellation of the license of the bank, the bank cannot do business. It becomes necessary for the customers of such banks to withdraw their money on time.

RBI has cancelled the license of Tezpur-based The Mahabhaira Cooperative Urban Bank due to its deteriorating financial condition. After cancellation of its license, the cooperative bank will stop doing banking business from the close of business on 24 July 2024.

The bank does not have money for business

In a statement, the Reserve Bank of India (RBI) said that the Registrar of Cooperative Societies Assam has also been requested to issue an order to close the bank and appoint a liquidator. Giving the reason for cancelling the license, RBI said that the bank does not have sufficient capital and earning prospects. According to RBI, the bank will be unable to make full payment to its existing depositors with its current financial position. It said that if the bank does business, it is detrimental to the interest of the depositors.

Also Read: Sahara Refund: Good news for investors, now investors can claim up to Rs 500000

Customers can withdraw this much money

Every depositor is entitled to get his money up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI said that as per the data provided by the cooperative bank, about 99.8 percent of the depositors are entitled to get their full deposit money from DICGC. As of June 13, 2024, DICGC has already paid Rs 20.03 crore of the total insured deposits.

The post Bank Cancelled License: Reserve Bank has cancelled the license of this bank, Customer withdraws money immediately first appeared on Rightsofemployees.com.

RBI cancels registration for 2 NBFCs, cites irregular lending practices

Pravesh Maurya — Tue, 09 Jul 2024 05:21:50 +0000

Mumbai. The Reserve Bank of India (RBI) has cancelled the registration certificates of two non-banking financial companies (NBFCs) – Star Finserv India and Polytex India – due to irregular lending practices.

The central bank gave this information. Hyderabad-based Star Finserv India was providing services under ‘Progcap’ (owned and operated by Desiderata Impact Ventures Private Limited). Mumbai-headquartered Polytex India was providing services under the ‘Z2P’ mobile application (owned and operated by Zytech Technologies Private Limited).

Why did RBI cancel the license

Giving reasons for cancellation of Star Finserv’s Certificate of Registration (COR), the Reserve Bank said that the company has violated the Code of Conduct Guidelines in Outsourcing Financial Services in its Digital Lending Operations by outsourcing its key decision-making functions, such as loan appraisal, loan approval as well as KYC verification process to the service provider. The Reserve Bank said that Star Finserv has violated the Reserve Bank’s guidelines on data privacy and security of customer information by providing full access to customer details to the service provider.

Polytex has violated the norms of Code of Conduct in Outsourcing of Financial Services by outsourcing its key decision making functions relating to KYC verification, credit appraisal, loan disbursement, loan recovery, follow up with borrowers and attending to and resolving borrower grievances.