Bank License: RBI’s big action, these two banks were closed, many people lost money

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The Reserve Bank of India monitors the performance of various banks and takes action if any irregularities are found to protect the interest of the customers. Often the Reserve Bank takes action against many banks for violating various regulations. Recently the license of two co-operative banks has been revoked.

Action on these two banks

The Reserve Bank of India (RBI) on Tuesday issued two separate The statements said that the licenses of two co-operative banks have been cancelled. These include Shree Sharda Mahila Cooperative Bank at Tumkur in Karnataka and Harihareshwar Bank at Satara in Maharashtra. The Reserve Bank says that both banks do not have enough capital to continue operations. Apart from this, there was no possibility of earning for both the banks. In such a situation, it was necessary to cancel their license.

This amount will be safe

RBI said that the order to close the business of Harihareshwar Cooperative Bank came into effect from July 11, 2023. has gone Deposits of customers up to Rs 5 lakh in banks are safe as this amount is insured by the Deposit Insurance and Credit Guarantee Corporation. Those whose deposits are  more than 5 lakh rupees, will have to lose the rupees above this limit. 99.96 percent depositors will get their total money from DICGC. Customers of this bank have received Rs 57.24 crore from DICGC till March 8, 2023. On the other hand, in case of Shree 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.

Prohibition of these operations

The Reserve Bank said that after the cancellation of the license Both the banks have been banned from all banking related activities. These banks will no longer be able to take any kind of deposits from customers. The Reserve Bank has also asked the Cooperative Commissioner and Registrar of Cooperative Societies to issue orders to stop the operations of the banks concerned. Along with this, the commissioner has also been directed to appoint liquidators for the banks.

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