RBI Canceled Bank License: The Reserve Bank of India is constantly tightening its grip on banks violating the rules. In this episode, RBI has taken a big action against two banks today and cancelled their license. The central bank on Friday cancelled the license of Banaras Mercantile Cooperative Bank and Karnataka-based Shimsha Cooperative Bank.

These banks will stop working from today

The Reserve Bank of India said in a statement that the license of Cooperative Bank Niyamitha, Maddur Karnataka has been canceled in view of its deteriorating financial condition, so the bank will stop banking business. It has also appealed to the Registrar of Cooperative Societies Karnataka to issue an order to close the bank and appoint a liquidator for the bank.

You will get 5 lakh rupees on deposit claim

In case of liquidation, every depositor is entitled to claim up to Rs 5 lakh on the amount deposited from the Deposit Claim and Credit Guarantee Corporation. According to the data submitted by the bank, RBI said that about 99.96 percent of the depositors are entitled to receive the full amount of their deposits from DICGC.

Giving detailed information, RBI further said that the bank does not have adequate capital and earning prospects and its continuation is detrimental to the interests of its depositors. In such a situation, the bank will be unable to make full payment to the depositors due to its current financial position.

₹11.85 crore has already been paid

Let us tell you that as of March 31, 2024, DICGC has already paid Rs 11.85 crore out of the total insured deposits based on the wishes received from the concerned depositors of the bank. Action was taken against this bank in June It is known that earlier on June 17, the central bank had canceled the license of Purvanchal Sahakari Bank of Ghazipur.

The license of this bank was also cancelled due to lack of sufficient capital and earning prospects. During this time RBI had said that the cooperative bank with its current financial position would be unable to make full payment to its existing depositors. If the banking business is allowed to continue then it will have a bad impact on the public.