New Delhi: The Reserve Bank of India has canceled the license of Goa-based Madgaum Urban Co-operative Bank. After this decision of RBI, now there will be no business of any kind with this bank. The special thing for the customers of this bank is that 99 percent of the depositors will not have to bear the loss of a single rupee. According to the amount deposited in the bank, the customers will get full coverage under the insurance. RBI has asked the Goa Registrar of Co-operative Societies to issue an order in this regard at the earliest and appoint a liquidator.
Here, the target of the Reserve Bank is at present all those banks in the country where the operations are not being done properly or are not being done. In the last few months, the Reserve Bank of India has canceled the licenses of about a dozen weak cooperative banks. Strict action has been taken against them. After the liquidation order is issued by RBI, the depositors get the benefit of insurance under the DICGC Act, 1961 i.e. Deposit Insurance and Credit Guarantee Co-operation.
The cabinet took a big decision on Wednesday itself
On Wednesday itself, the Modi cabinet has taken a big decision regarding depositor insurance. In the cabinet meeting, the Deposit Insurance and Credit Guarantee Corporation i.e. DICGC Act has approved amendment in 1961. Under this, the depositors will get the money within 90 days in case of the sinking or closure of a bank. This maximum amount will be 5 lakhs which was earlier only 1 lakh rupees.
