RBI canceled the license of another bank in Maharashtra, questions raised about the deposits of customers
New Delhi. The Reserve Bank of India (RBI) has taken action against another bank in Maharashtra. His license has been cancelled. RBI says that the bank did not have sufficient capital and earning potential was negligible.
Bank license canceled
As soon as RBI has canceled the license of this bank, from that time all the transactions of this bank have been banned. Now the customers of the bank will not be able to deposit or withdraw money in this bank. There is concern among the customers as to what will happen to their deposited money.
The name of the bank whose license has been canceled by RBI is Dr. Shivajirao Patil Nilangekar Urban Co-operative Bank Ltd. This bank is from Maharashtra. Even before this, RBI has taken similar action on many banks in Maharashtra. There are about half a dozen such banks, in which the deposits of customers are kept.
RBI ordered closure
RBI says that Dr. Shivajirao Patil Nilangekar Urban Co-Operative Bank Limited may be unable to repay the money of its customers. This bank is not able to meet its liabilities in the current financial position. In such a situation, RBI has ordered the Cooperative Commissioner of Maharashtra Government and Registrar of Cooperative Societies to close the bank.
This bank cannot be run regularly
According to RBI Dr. Shivajirao Patil Nilangekar Urban Co-Operative Bank at present has no means of earning to sustain itself. It is not working as per the provisions of Banking Regulation Act 1949. In such a situation, RBI had to take this decision. He believes that it would not be appropriate for this bank to remain open to the customers. If this is left, then bank customers may be affected further.
The money deposited by the customers in this bank will be returned as per the rules. These banks are insured by the Deposit Insurance and Credit Guarantee Corporation. With this, deposits in these banks are guaranteed up to Rs 5 lakh. In such a situation, now the customers of Dr. Shivajirao Patil Nilangekar Urban Co-Operative Bank Ltd. will get their deposited money back under this guarantee scheme.