RBI Canceled Co-operative Bank License: The Reserve Bank of India regulates all the public sector banks, private and co-operative banks in the country. The bank keeps checking from time to time that how is the financial condition of the bank. Whether the bank is following the rules made by the Reserve Bank or not. If a bank is found violating the rules, then in such a situation the bank imposes a heavy penalty on the bank. Along with this, if the financial condition of the bank is not good, the Central Bank (Reserve Bank of India) cancels even the license of such banks. Recently, the Central Reserve Bank has taken strict action against a bank and canceled its license. In such a situation, the biggest question is what will happen to the account holders of the bank. Let us know which is this bank and whether the bank’s customer is entitled to receive the amount deposited in the account or not.
RBI took action on which bank
Let us tell you that the name of the bank on which Reserve Bank of India has taken this action is Babaji Date Mahila Sahakari Bank Limited (Babaji Date Mahila Sahakari Bank Limited). This is the co-operative bank of Yavatmal, Maharashtra. The Reserve Bank has taken action against this bank because the financial condition of the bank was very bad for the last few months.
Along with this, there was no further source of earning in this bank. In such a situation, taking a decision in favor of the customers, the Reserve Bank has decided to cancel the license of the bank (Babaji Date Mahila Sahakari Bank Limited License Cancelled). RBI has banned any kind of transaction on the bank. In such a situation, the customer will neither be able to deposit nor withdraw money from the account.
What will happen to the money deposited in the customers’ account?
Giving information about the cancellation of the license of Babaji Date Mahila Sahakari Bank Limited, the Reserve Bank said that the financial condition of the bank is very bad. In such a situation, keeping in mind the financial security of the customers, RBI has decided to cancel its license. 79 percent of the bank’s customers will get the money deposited under the Insurance Deposit Insurance and Credit Guarantee Corporation (DICGC) Insurance Scheme of RBI. DICGC is a subsidiary of the Reserve Bank which provides financial security to the customers of cooperative banks. In such a situation, DICGC gives full insurance claim to an account holder on a deposit of Rs 5 lakh. According to DICGC data, till October 16, 2022, in which bank the total sum insured is Rs 294.64 crore.
RBI has already canceled the license of these banks
Even before this, the Reserve Bank has canceled the license of many co-operative banks of the country. This bank is The Laxmi Co operative Bank Limited of Maharashtra. Apart from this, the license of Pune-based ‘The Seva Vikas Co-Operative Bank Limited’ (The Seva Vikas Co-Operative Bank) was also canceled by the RBI. The reason behind this decision of RBI was that the financial condition of these two banks was very bad.
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