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License cancellation of 7 banks simultaneously.. RBI which is shocking in a row..
The behaviour of the banks is being observed at all times. RBI will crack down on banks that violate the rules and take decisions to the detriment of customers.
Violation of the rules is sometimes punishable by heavy fines. If the violation of those norms is too much, then in some cases the license of the banks will be revoked. It is known that RBI has cancelled the license of many banks which have acted against the rules in recent times. Recently RBI shocked another bank. The bank has taken a decision to cancel the license. Last month also cancelled the license of many banks.
Banaras Merchant Cooperative Bank, headquartered in Varanasi, Uttar Pradesh, has gone bankrupt. In this order, RBI cancelled the license of the said bank. Sources of RBI said that the strict decision has been taken in the case of this bank due to the fact that the bank is not getting any income and the financial condition is completely damaged. RBI sources revealed that the decision to cancel the license of Banaras Merchant Cooperative Bank is effective from July 4. As for the customers, 99.98 percent of the deposited money will be returned to the depositors.
The money of the depositors will be given in full by the Deposit Insurance Credit Guarantee Corporation . This Deposit Insurance Credit Guarantee Corporation provides an insurance coverage of up to 5 lakh rupees per depositor. Insurance coverage is provided in case of loss of banks due to natural calamities and bankruptcy of banks.
Not only this bank.. RBI cancelled the license of two banks in the month of June. Purvanchal Cooperative Bank of Ghazipur in UP and City Cooperative Bank of Mumbai have cancelled their licences. In January 2024, Sumerpur Mercantile Urban Cooperative Bank Limited in Rajasthan, Jayaprakash Narayan Nagari Sahakari Bank Limited in Maharashtra, Sri Mahalakshmi Merchant Cooperative Bank in Dabhoi, Gujarat and Hiriyur Urban Cooperative Bank Limited in Karnataka cancelled their bank licences.
