RBI Canceled Bank License: If you are also having a bank account then there is important news for you. The Reserve Bank of India (RBI) has canceled the license of a major bank.
The Reserve Bank of India (RBI) has canceled the license of Babaji Date Mahila Sahakari Bank Limited, Yavatmal, Maharashtra. Giving this information on Friday, the Reserve Bank has told that this step has been taken in view of this lender does not have sufficient capital and earning prospects.
RBI gave information
Quoting the data released by the bank, the Reserve Bank said that about 79 percent of the depositors are entitled to get the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). Let us inform you that DICGC has already paid Rs 294.64 crore of the total Sum Assured till October 16, 2022.
What is the reason for cancellation of license?
As per information provided by RBI, consequent to the cancellation of its licence, Babaji Date Mahila Sahakari Bank Ltd. has been barred from carrying on the business of ‘Banking’ which shall, inter alia, allow it to accept deposits and make payments. It also includes being stopped from doing so with immediate effect.
Customers will be affected!
The Reserve Bank said that the bank with its current financial position would be unable to make full payments to its existing depositors, and public interest would be adversely affected if the bank is allowed to carry on with its banking business. The Reserve Bank on Friday (November 11, 2022) announced the cancellation of the license of Babaji Date Mahila Sahakari Bank after the closure of business, saying that the bank does not have sufficient capital and earning prospects.
