new Delhi. The license of Subhadra Local Area Bank in Kolhapur, Maharashtra has been canceled by the Reserve Bank of India. According to RBI, the process the bank was dealing with could harm bank depositors. Come also tell you what has been said by the bank. According to the Reserve Bank, the bank has violated the rule of minimum net worth in two quarters of the financial year 2019-20. According to RBI, Subhadra Local Area Bank has enough cash to return the depositors’ money.
Why did RBI have to take a decision
The RBI had to take this decision because the Subhadra Local Area Bank was operating because of which the bank’s depositors could suffer a lot in the coming days. RBI said that the way the bank management works can harm the interests of depositors in the current and coming days.
Action is effective
According to RBI, the license of Subhadra Local Area Bank has been canceled on 24 December 2020. This means that the bank’s business has been closed since December 24. With this, he will not be able to do any banking activities. RBI will file before the High Court for liquidation of the bank.