RBI canceled banks license: The Reserve Bank of India (RBI) is continuously taking action against financial irregularities and loss-making banks. Meanwhile, RBI has canceled the license of two more banks.
With this, the central bank has canceled the license of four banks and banned their transactions within a week. This time the Reserve Bank has canceled the license of Shree Sharda Mahila Sahakari Bank located in Tumkur, Karnataka and Harihareshwar Bank located in Satara, Maharashtra.
According to the central bank, these two co-operative banks did not have enough capital and earning potential. After which the license of these two cooperative banks has been canceled and ordered to be closed. Please tell that the order of closure of business of Harihareshwar Cooperative Bank has become effective from July 11, 2023. With this, now the customers will neither be able to deposit nor withdraw money in this bank.
The account holder now has this option
After canceling the license of these two banks, about 99.96 percent depositors ie customers of these banks will get their total deposits from the Deposit Insurance and Loan Guarantee Corporation (DICGC). At the same time, about 97.82 percent depositors (customers) of Shri Sharda Mahila Sahakari Bank will get their entire deposit capital from DICGC. Whereas on liquidation, each depositor can get his deposit amount up to Rs 5 lakh from DICGC. Which they will get under the deposit insurance claim amount.
RBI said this while canceling the license of banks
After cancellation of the license of these banks by RBI, they were banned from bank related activities. This includes acceptance of deposits and repayment of deposits, among other things. The central bank said that both the cooperative banks do not have proper capital and earning potential. Therefore both the banks are unable to return the full money of their depositors in view of their current financial condition.
Earlier the license of these banks was canceled
Let us tell you that in the last one week, RBI has canceled the licenses of four banks. Earlier, the central bank had canceled the license of two co-operative banks of Maharashtra and Karnataka. Businesses of these two banks were also closed from July 5, 2023. Following the Reserve Bank’s order, the banking licenses of Buldhana-based Malkapur Urban Co-operative Bank Limited and Bengaluru-based Sushruti Souhard Sahakar Bank Regular were cancelled. After this, the business of these banks also stopped from 5th July.
