Bank License Cancelled: In a major decision today, the Reserve Bank of India has ordered the closure of two co-operative banks in two states of the country.
The Reserve Bank is called the banker’s bank. In India, only the Reserve Bank gives permission to start banks. And ignoring the rules, it can even close the banks. In a major decision today, the Reserve Bank of India has ordered the closure of two co-operative banks in two states of the country. The Reserve Bank has canceled the licenses of these banks. After the decision of the Reserve Bank, now these banks will not be able to provide banking services to the customers.
Which banks were closed
The Reserve Bank on Wednesday said that the bank licenses of two co-operative banks operating in Maharashtra and Karnataka have been cancelled. In two separate statements, the RBI said it has canceled the banking licenses of Buldhana-based Malkapur Urban Co-operative Bank Ltd and Bengaluru-based Sushruti Souharda Sahakari Bank Regular. According to the statement, after the close of business on Wednesday, these two co-operative banks will not be able to do any kind of bank related work. The central bank has taken this step considering the lack of adequate capital and income potential with these cooperative banks.
Big action was also taken last month
The Reserve Bank has given strict orders in the last month also regarding negligence in the operations of the banks. The Reserve Bank of India (RBI) in June imposed a penalty of Rs 2.5 crore on Jammu and Kashmir Bank for non-compliance with directions. Bank of Maharashtra has also been fined Rs 1.45 crore for non-compliance of certain directions issued by the RBI. In another statement, the central bank said a penalty of Rs 30 lakh has been imposed on Axis Bank. It said the bank had levied penal charges in some accounts for late payment of credit card dues, though the customers had paid the dues through other means by the due date. RBI said the penalty is based on deficiencies in regulatory compliance.
Non-compliance of RBI rules cost this bank heavily
Ignoring the rules of the Reserve Bank has taken a heavy toll on another bank. The Reserve Bank of India (RBI) has imposed a penalty of Rs 60.20 lakh on The Bihar State Co-operative Bank Limited, Patna for violation of regulatory provisions. Explain that RBI has made strict rules regarding the day-to-day functioning of banks and the Reserve Bank keeps on reviewing the functioning of private, government and cooperative banks of the country from time to time. Meanwhile, a case of violation of rules has come to the fore on behalf of Bihar State Cooperative Bank Limited of Patna.
