RBI Canceled License: Taking a major decision today, the Reserve Bank of India has ordered the closure of two cooperative banks in two states of the country. The bank gives permission to start a bank in India and banks can also be closed if the rules are ignored.
RBI Canceled License: Taking a major decision today, the Reserve Bank of India has ordered the closure of two cooperative banks in two states of the country. The bank gives permission to start a bank in India and banks can also be closed if the rules are ignored. Taking a major decision, the Reserve Bank of India has ordered the closure of two cooperative banks in two states and canceled their licenses. After the decision of the Reserve Bank, now these banks will not be able to provide banking services to the customers.
These 2 banks closed
The Reserve Bank has canceled the bank licenses of two co-operative banks operating in Maharashtra and Karnataka. In two separate statements, the RBI said it has sanctioned Buldhana-based Malkapur Urban Co-operative Bank Ltd and Bengaluru-based Sushruti Souharda Sahakari Bank Regular (Bengaluru-based Sushruti Souharda Sahakari Bank). Banking license has been cancelled. According to the statement, after the cancellation of the license, these two co-operative banks will not be able to do any kind of transaction or work related to the bank. This step has been taken in view of the paucity of capital and income potential with these co-operative banks.
Last month RBI fined many banks
The Reserve Bank had also given strict orders last month regarding the negligence in the functioning of the banks. The Reserve Bank of India (RBI) in June imposed a penalty of Rs 2.5 crore on Jammu and Kashmir Bank for non-compliance of directions. A penalty of Rs 1.45 crore has also been imposed on Bank of Maharashtra for non-compliance of the directions issued by RBI. The central bank had earlier imposed a penalty of Rs 30 lakh on Axis Bank as well. Axis Bank had imposed a charge on the credit card for not paying the dues on time. Whereas, the customer had paid the charge. RBI had imposed this fine for not following the rules.
Banks have to pay heavy for not following RBI rules
Ignoring the rules of the Reserve Bank falls heavily on another bank. The Reserve Bank of India (RBI) has imposed a penalty of Rs 60.20 lakh on The Bihar State Co-operative Bank Limited Patna. RBI has made strict rules regarding the day-to-day functioning of banks and the Reserve Bank periodically reviews the functioning of private, public and cooperative banks in the country.
