RBI Canceled Co-operative Bank License: Nowadays everyone’s accounts are in some bank or the other. In such a situation, there is important news for bank customers. Reserve Bank of India has taken a big decision. The Reserve Bank of India, taking strict action on a Co-operative Bank, has decided to cancel its license (RBI Canceled License of Cooperative Bank).
License of this bank canceled
Let us tell you that this bank is Deccan Urban Co-operative Bank of Karnataka. RBI has canceled the license of the bank with effect from 18 August 2022. So helpless, RBI has also asked the Registrar of Co-operative Banks Committee to manage all the money of the bank. RBI has also ordered the appointment of an officer for this.
Why did RBI take this decision?
RBI has taken this action on Deccan Urban Co-operative Bank of Karnataka because the bank had no means of earning. Not only this, the financial condition of the bank was also very bad and it lacked the capital to return the money to the bank depositors. In such a situation, RBI had to show this strictness.
Now the question is whether the customers will be able to withdraw their money after the cancellation of the license of the bank? So let us tell you that customers will no longer be able to withdraw money from their account nor will they be able to deposit money. RBI has taken this action due to non-compliance of the provisions of section 11(1) and section 22(3)(d) along with section 56 of the Banking Regulation Act, 1949. Also failing to comply with the Banking Regulation Act 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e) Due to this, action has also been taken on the bank.
Customers will get insurance benefits
However, customers need not panic. Customers whose money is deposited in Deccan Urban Co-operative Bank get insurance facility on a deposit of Rs 5 lakh. This insurance is being provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC) Insurance Scheme. Actually, DICGC is a Reserve Bank subsidiary which provides financial protection to the customers of Co-operative Bank, in which DICGC gives full insurance claim to an account holder on a deposit of Rs 5 lakh.