The Reserve Bank of India (RBI) has received the financial status news of another bank. Due to this he has decided to close this bank.
RBI has issued orders regarding this. Due to this move of RBI, depositors’ money got stuck at present. Although the deposited money will be returned later, but it will be difficult for everyone to get it.
Let us know which is this bank and which depositors will get their money back. Apart from this, if you want to read the order of RBI to close the bank, then its link is also given at the end. You can also read the order in full by opening that link.
This is People’s Co-Operative Bank Ltd.
RBI has banned the functioning of People’s Co-Operative Bank Ltd. Along with banning the People’s Co-Operative Bank Limited of Uttar Pradesh, RBI has also issued an order to close this bank. In this regard, the RBI has also asked the Cooperative Commissioner of Uttar Pradesh and the Registrar of Cooperative Societies to issue an order to close the bank and appoint a liquidator.
RBI told the reasons for closing the bank
RBI has also disclosed the reasons for the closure of the bank. According to RBI, the financial condition of Peoples Co-Operative Bank Limited is not good. In such a situation, if this bank is allowed to continue business, then it will not be in public interest. Due to this the license of this bank is being canceled.
Know how the depositors will get their money back after the closure
Whenever a bank is closed in the country, the money deposited in it is not completely safe. This is the reason that after the closure of the bank, many customers are not able to get their deposited money back completely. Although usually such customers are only around 1 percent.
How much money will be returned after the bank is closed
According to the rules applicable in the country, if the bank is closed, then the deposit in it is safe only up to Rs 5 lakh. This means if the customer’s money deposited in the bank is up to Rs 5 lakh including interest, then it is fully refunded. But if this deposited money is more than Rs 5 lakh with interest, then only Rs 5 lakh is returned. Apart from this, the money which accumulates above Rs 5 lakh, it gets sunk. After the closure of the bank, this money is returned under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961.
Fourth consecutive bank that has been closed
This is the fourth consecutive bank that RBI has closed. However, all the banks that have been closed are cooperative banks. Banks that closed earlier are
Sarjerodada Nayak Shirala Cooperative Bank
Independence Co-Operative Bank
Mantha Urban Cooperative Bank
This is the order of RBI to close the bank
