RBI Action: The Reserve Bank has decided to cancel the license of this co-operative bank of Rajasthan. Let us know how much impact this decision will have on customers.
RBI Canceled Bank License: The Reserve Bank of India, taking major action against Rajasthan based Co-operative Bank, has canceled the license of the bank. This action has been taken on Sumerpur Mercantile Urban Co-operative Bank located in Pali, Rajasthan. Giving information about the action taken against the bank, the Reserve Bank said that Sumerpur Mercantile Urban Co-operative Bank was facing financial crisis for a long time.
According to RBI, this bank did not have adequate sources of income and capital. In such a situation, keeping in mind the interest of the customers, the Reserve Bank has decided to cancel the license of the bank. This action has been taken only after the request of the cooperative societies of Rajasthan.
What will happen to customers’ money?
After the license of Sumerpur Mercantile Urban Co-operative Bank is cancelled, the biggest question is what will happen to the customers’ money. On liquidation, every depositor will get the benefit of insurance on deposits up to Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC) under the provisions of the DICG Act, 1961. The Reserve Bank has made it clear that 99.13 percent of the bank’s depositors will get the benefit of DICGC deposits.
RBI took strict action against these banks including SBI
Recently, the Reserve Bank has taken major action and imposed a fine of crores on three banks including the country’s largest government bank State Bank of India. Along with SBI, the names of Canara Bank and City Union Bank are also included in this.
Due to violation of rules, the regulator has imposed a total fine of more than Rs 3 crore on all the banks. A penalty of more than Rs 2 crore has been imposed on SBI. A fine of Rs 32.30 lakh has been imposed on Canara Bank and Rs 66 lakh on City Union Bank.
