RBI: The Central Bank of India has now started taking a tough stance against private banks and taking strict steps. Within a few days, the Reserve Bank of India (RBI) has canceled the licenses of many banks in the country and cited violation of rules as the reason behind this.
Meanwhile, recently the Central Bank has also canceled the license of a bank in Uttar Pradesh. Let us tell you that RBI has canceled the license of Urban Co-operative Bank of Lucknow due to lack of sufficient capital and closure of earning avenues.
Apart from this, RBI has also ordered the Registrar and Cooperative Commissioner of Lucknow to close the bank. Along with this, there has also been talk of appointing a liquidator for the bank.
Along with canceling the license of the bank, RBI has stopped the functioning of the cooperative bank. Along with this, the bank has also been strictly prohibited from depositing cash and giving money to any customer.
That means now the bank cannot do any transaction work. RBI believes that the Urban Cooperative Bank of Lucknow is not fully capable of paying the deposited money of the customers. Therefore, banking business may also be affected and customers may also suffer losses.
Will customers get their money back?
Let us tell you that customers who have deposits of ₹ 500000 in this bank get insurance cover. Therefore, those who have Rs 5 lakh deposited in banks will not suffer any loss of their money. The bank will return the money to such customers under deposit insurance and credit guarantee insurance.
RBI said that 99.53% customers of Lucknow’s Co-operative Bank are entitled to take their entire money under DICGC. This means that customers who have deposited more than Rs 5 lakh will also get only Rs 5 lakh.
RBI’s baton hit these banks also
RBI had also canceled the license of Mumbai’s Local Kapol Co-operative Bank Limited a few days ago and on September 21, it had also canceled the license of Ananthashayanam Co-operative Bank of Thiruvananthapuram.
A few days before this, RBI had also canceled the license of Girna Co-operative Bank of Nashik district. Apart from these, RBI had also canceled the license of Mallikarjuna Pattana Co-operative Bank of Karnataka and National Co-operative National Bank of Bahraich, Uttar Pradesh.
