RBI has canceled the banking license of Urban Co-operative Bank Limited due to lack of sufficient capital and earning potential.
RBI Canceled Banking License: Today is the last day of the month of September. During this period, Reserve Bank of India took action against many banks. Another cooperative bank has been included in this list. With this, a total of 6 banking licenses have been canceled in the month of September. The Central Bank has issued an order to Urban Co-Operative Bank Limited of Lucknow to close banking business.
What did the Reserve Bank say?
RBI said that Urban Co-operative Bank Limited does not have sufficient capital and earning prospects. The bank also failed to comply with the requirements of Section 22 (3) (A), Section 22 (3) (B), Section 22 (3) (D) and Section 22 (3) (E). If this bank continues its business, public interest will be deeply affected. In its present condition the bank cannot even make full payments to the depositors. From September 29, banks will not be allowed to accept deposits or even repay deposits.
Customers will be able to withdraw this much money
Under the Deposit Insurance and Credit Guarantee Corporation (DICGC) rules, each depositor can claim only a deposit amount of up to Rs 5 lakh. According to statistics, 99.53% depositors can claim the entire amount.
License of these banks also canceled
Earlier, RBI has canceled the licenses of Nashik District Girna Co-operative Bank Limited, The Kapol Co-operative Bank Limited, Mallikarjuna Pattan Public Bank Regulara, National Co-operative Bank Limited and Ananthashayanam Co-operative Bank.
