RBI has canceled the license of Nashik District Girna Cooperative Bank Limited. Banks will not be allowed to do banking business from September 26.
RBI Action: Reserve has announced the closure of another government bank on 26th September i.e. today. For the last few days, RBI has been continuously taking strict action against banks. Keeping in mind the safety of customers, the Central Bank has canceled the license of a co-operative bank of Maharashtra. The bank has also been described as a threat to the interests of its customers.
This bank has closed down
On Tuesday, RBI said that an order has been issued to cancel the license of Nasik District Girna Sahkari Bank Limited of Maharashtra. Banks will not be allowed to do banking business from September 26. That means this bank will not be able to accept deposits and repay deposits.
What did RBI say?
According to the Reserve Bank, this bank does not have sufficient capital and earning potential. In this way, this bank of Nashik does not follow many provisions related to the Banking Regulation Act 1949. RBI said, “The survival of the bank is detrimental to its customers. At present the situation of the bank is such that it cannot even make full payment to the depositors. If it is granted approval for banking business, it will have a negative impact on public interest. RBI has also clarified that under DICGC rules, each customer can avail deposit insurance claim amount of their deposits up to a monetary limit of Rs 5 lakh. The bank has already made total insured deposits of Rs 16.27 crore.
