The Reserve Bank of India (RBI) has said that there is a cash crisis in front of this Co-Operative Bank of West Bengal. Also, there is no hope of earning it in the near future. In this case, it has been decided to cancel its banking license.
New Delhi. The Reserve Bank of India (RBI) has canceled the license of United Co-Operative Bank Limited (United Co-Operative Bank Ltd.) located in Bagnan, West Bengal due to bad financial conditions. After this decision of the central bank, from May 13, 2021, all kinds of banking activities in this co-operative bank have been banned (Banking Business Restrictions). The RBI said that the registrar of the Co-operative Societies of West Bengal had also requested to close the bank and appoint a liquidator. Now the question arises that what will happen to the deposits of customers in United Co-operative Bank? How will the entire deposit amount be returned to the customers
The RBI said that the bank does not have sufficient capital nor is there any hope of earning in the near future. Also told that all depositors of the bank will be returned the entire deposit amount through Deposit Insurance (Deposit Insurance) and Credit Guarantee Corporation (DICGC). Explain that the RBI had also taken action against this co-operative bank on 18 July 2018. The RBI then banned many services, including investment, loan, renewal of the scheme, to the bank without written permission. However, the central bank then made it clear that it should not be deemed to be revoking the license of the bank. This time RBI has canceled the license of United Co-operative Bank Limited.
reason for the ban was given by the
Reserve Bank, the Reserve Bank said that some of these Co-operative Bank Banking Regulation Act, 1949 Was not even fulfilling the provisions. Also said that not imposing restrictions on the bank is prejudicial to the interests of its depositors. The bank will also be unable to pay its depositors in full along with their current financial status. If the bank is allowed to continue the business, then it will be against the interests of the customers. Hence, all the ganking activities are being banned with immediate effect by canceling the license of the bank.
When customers will start
receiving deposits, the RBI said that with the cancellation of the license and commencement of the disclosure proceedings, the depositors will be returned to them under the DIRCGC Act, 1961. According to the data provided by the bank, all depositors will be returned their full amount. However, according to the rules, a limit of up to Rs 5 lakh will also be followed. Earlier, on May 11, 2021, RBI imposed a fine on two co-operative banks of Maharashtra, Siddheshwar Cooperative Bank, Latur and Shankar Nagari Cooperative Bank Limited. In this, a fine of Rs 3.50 lakh was imposed on Siddheshwar Cooperative Bank and Rs one lakh on Shankar Nagari Cooperative Bank.
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