RBI Cancels License: The Reserve Bank has decided to cancel the license of two cooperative banks. After this decision of the Central Bank, the operations of both the cooperative banks have been completely suspended.
Central Bank RBI (RBI) is the regulator of the country’s banking world. RBI monitors the functioning of various banks to safeguard the interest of the customers and takes action if any lapses are found. Often many banks come under the purview of the Reserve Bank’s action on various matters. In the latest case, two co-operative banks have become victims, whose license has been cancelled.
Action on these two banks
The Reserve Bank of India (RBI) said in two separate statements on Tuesday that the licenses of two cooperative banks have been cancelled. These include Shri Sharda Mahila Sahakari Bank at Tumkur in Karnataka and Harihareshwar Bank at Satara in Maharashtra. The Reserve Bank says that both the banks did not have sufficient capital to continue operations. Apart from this, there was no earning potential left for both the banks. In such a situation, it was necessary to cancel his license.
This amount is safe
RBI said that the order to close the business of Harihareshwar Cooperative Bank has become effective from July 11, 2023. Let us tell you that deposits of customers up to Rs 5 lakh in banks are safe, because Deposit Insurance and Credit Guarantee Corporation has insurance of this amount. Those whose deposits exceed Rs 5 lakh, their money above this limit is lost.
only so many people will get money
According to the Reserve Bank, 99.96 percent of the depositors of Harihareshwar Sahakari Bank will get their total money from DICGC. The customers of this bank have received Rs 57.24 crore from DICGC till March 8, 2023. On the other hand, in the case of Shri Sharda Mahila Sahakari Bank, about 97.82 percent depositors will get full refund from DICGC. DICGC has returned Rs 15.06 crore to the customers of this bank till June 12, 2023.
Ban on these works
The Reserve Bank has said that after the cancellation of the license, both the banks have been banned from all activities related to banking. These banks can no longer take any kind of deposits from the customers. The Reserve Bank has also asked the Commissioner of Co-operative and Registrar of Co-operative Societies to issue an order to stop the operations of the concerned banks. Along with this, the commissioner has also been directed to appoint a liquidator for the banks.
