Reserve Bank of India is showing strict action on banks nowadays and in this episode RBI has canceled the license of a co-operative bank. Know where this bank is and what will happen to the money of its account holders.
RBI Action: The Reserve Bank of India (RBI) on Wednesday canceled the license of Sarjerodada Naik Shirala Cooperative Bank located in Sangli, Maharashtra.
RBI has taken this step due to lack of sufficient capital and earning prospects with the bank. The license of this bank has been canceled since yesterday.
With the cancellation of the licence, the banking business of the Sargerodada Naik Shirala Sahakari Bank Ltd. has been ceased with the close of the business day on Wednesday,” RBI said in a statement.
According to the statement, the commissioner of cooperatives and registrar of cooperative societies in Maharashtra have also been requested to issue an order to close the bank and appoint a liquidator for the lender.
RBI said that on liquidation every depositor would be entitled to receive deposit insurance claim amount from the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a monetary limit of Rs five lakh .
RBI had also imposed a penalty on 3 banks The
Reserve Bank of India (RBI) had also imposed a penalty on 3 co-operative banks earlier. The Reserve Bank of India has imposed a fine on three co-operative banks, including Nagrik Sahakari Bank Maryadit, located in Raipur, Chhattisgarh.
These banks have been fined for lapses in regulatory compliance. Apart from this, the Reserve Bank has also imposed a fine of one lakh rupees on District Co-operative Central Bank Maryadit (Panna).
Let us tell you that before this, Baramulla Central Co-operative Bank Limited of Jammu and Kashmir was fined
two lakh rupees for violating the instructions of RBI to stop the acceptance of new deposits. The RBI said it has imposed a fine of Rs 2 lakh on The Big Kancheepuram Co-operative Town Bank Limited (No. 3) for non-compliance with the directions issued under the loan rules and statutory/other restrictions.
In addition, Chennai Central Co-operative Bank has been fined Rs 1 lakh for non-compliance and violation of certain directions in matters relating to income recognition, asset classification, provisioning and other related matters.
