Reserve Bank of India: There seems to be a lot of strictness from RBI regarding banks these days. Now the Reserve Bank has canceled the license of another bank. RBI (RBI canceled license) has ordered the closure of another bank, after which the customers having accounts in that bank may have to face problems.
Which bank’s license was cancelled?
Let us tell you that RBI canceled the banking license of Nashik District Girna Cooperative Bank Limited. The reason for this is that the bank does not have sufficient capital and earning potential. Information regarding this has been given by RBI.
Banking facilities closed
The Reserve Bank of India said in a statement that as a result of the cancellation of the license, the bank is prohibited from carrying on ‘banking’ business, which includes accepting deposits and repayment of deposits, with immediate effect.
There is a plan to close many more banks also
It also said that the Commissioner and Registrar of Cooperatives, Maharashtra has also been requested to issue an order to close the bank and appoint a liquidator for the bank. On liquidation, every depositor will be entitled to receive the deposit insurance claim amount of up to Rs five lakh of his deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
RBI released figures
The Reserve Bank has said that according to the bank’s data, 99.92 percent of the depositors are entitled to receive the full amount of their deposits from DICGC.
Co-operative bank has no earning potential
DICGC has already paid Rs 16.27 crore out of the total insured deposits based on the willingness received from the respective depositors of the bank. The Reserve Bank said that the co-operative bank does not have adequate capital and earning prospects and has failed to comply with the provisions of the Banking Regulation Act, 1949.
The license of The Kapol Bank has also been cancelled.
Let us tell you that recently the Reserve Bank of India (RBI) has canceled the license of ‘The Kapol Co-operative Bank Limited’ of Mumbai. The central bank has said that the bank does not have sufficient capital and there is no earning potential, due to which RBI has taken this decision.
