RBI Cancels THIS Bank’s License With Immediate Effect; Check if You Have Account in This Bank

RBI Cancels THIS Bank's License With Immediate Effect; Check if You Have Account in This Bank

The Reserve Bank of India (RBI) has recently imposed penalties on some banks and has now canceled the license of a co-operative bank. RBI has canceled the license of Shankarrao Pujari Nutan Nagari Sahakari Bank Limited located in Ichalkaranji, Kolhapur. 

This step has been taken by the Central Bank because the bank does not have sufficient capital and earning potential.

In a statement from RBI, it was said that the Shankarrao Pujari Nutan Nagari Sahakari Bank has stopped banking operations from the close of business on December 4, 2023.

RBI Cancels THIS Bank's License With Immediate Effect; Check if You Have Account in This Bank
Source: Hindustan Times

According to the data filed by the bank, 99.85 percent of the bank’s depositors are entitled to get the entire amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). While canceling the license of the bank, RBI said, ‘The bank does not have sufficient capital and earning potential. The co-operative bank with its current financial position will be unable to make full payments to its current depositors.’

The Reserve Bank also said that if the United India Co-operative Bank is allowed to carry on its banking business, public interest will be adversely affected. The bank with its current financial position will be unable to make full payments to its current depositors. 

Under DICGC rules, every depositor of the bank will be entitled to receive the deposit insurance claim amount of his deposits up to the monetary limit of Rs 5 lakh. 

RBI Cancels THIS Bank's License With Immediate Effect; Check if You Have Account in This Bank
Source: DICGC

Earlier, the Reserve Bank had imposed a fine on four cooperative banks for not following the rules. These cooperative banks are Jijamata Mahila Cooperative Bank Limited, Shri Lakshmikripa Urban Cooperative Bank Limited, The Konark Urban Cooperative Bank Limited and The Chembur Citizens Cooperative Bank Limited.

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