RBI Canceled Bank License: For non-compliance of the rules by the Reserve Bank of India (RBI), fines are imposed against the banks. But now a bank will be closed from tomorrow i.e. 22nd September.
It was told by the Reserve Bank of India that the customers who have deposited money in this bank will not be able to withdraw money from tomorrow. In the last days, RBI had taken action against many banks and financial institutions.
The financial condition of the bank is not good, RBI had canceled the license of Pune-based Rupee Co-operative Bank Limited in August. Banking services will be closed after the implementation of this decision of RBI on 22nd September. In the notice issued by RBI, it was told that the financial condition of the bank is not good.
The reason for canceling the license was told by the Reserve Bank that the bank will close its business on 22 September. After this, bank customers will neither be able to deposit money nor withdraw from the account.
Apart from this, no financial transactions will be done. It was told by RBI that the bank does not have capital and there is no possibility of earning further. This is the reason for canceling the license of the bank.
What will happen to customers’ money?
All the customers whose money is deposited in this bank will get an insurance cover of Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme of RBI. According to this rule, if a bank is closed due to bad financial condition, then the customer gets the benefit of insurance cover on deposits up to Rs 5 lakh through DICGC. This money is given to the concerned customer.
