Bank License Cancelled: Keeping in mind the interests of the customers, the Reserve Bank of India has been taking strict action against the banks that have violated the rules. Something similar was done this year and the license of 11 banks was cancelled.
In fact, RBI cancels the license of those cooperative banks which do not have sufficient keys. All these banks could not guarantee repayment to the depositors. Due to which the license of these banks has been canceled for the safety of money.
Action taken on these banks in 2024
- Uravakonda Co-operative Town Bank Ltd., Andhra Pradesh
- Jai Prakash Narayan Nagari Sahakari Bank Ltd., Basmathnagar, Maharashtra
- The Mahabhairab Co-operative Urban Bank Ltd., Tezpur, Assam
- The City Co-operative Bank Limited, Mumbai, Maharashtra
- The Hiriyur Urban Co-operative Bank Ltd. Hiriyur, Karnataka
- Durga Co-operative Urban Bank Ltd., Vijayawada, Andhra Pradesh
- Purvanchal Co-operative Bank Ltd., Ghazipur, UP
- The Banaras Mercantile Co-operative Bank Ltd., Varanasi
- Shimsha Cooperative Bank Ltd, Maddur, Mandya, Karnataka
- Shri Mahalaxmi Mercantile Co-operative Bank Ltd., Dabhoi, Gujarat
- Sumerpur Mercantile Urban Co-operative Bank Ltd., Sumerpur, Pali Rajasthan
What will be the impact on the account holder?
Whenever RBI closes a bank, its impact on the account holders will be only as much as the amount deposited in their account. Those who have a deposit amount of up to Rs 5 lakh in their account can avail the loan through Deposit Insurance and Credit Guarantee Corporation.
There is a rule in India. If a bank closes down, you will get back your money up to Rs 5 lakh in that bank. This work is done by an organization called Deposit Insurance and Credit Guarantee Corporation. On the other hand, if you have more than Rs 5 lakh deposited in a bank and the bank closes down, you will not get that much money back. That means you may suffer a loss.
DICGC insures all types of bank accounts. Meaning, whether your account is a savings account, current account or any other type of account, if the bank closes down, you will get back up to Rs 5 lakh.
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