RBI has canceled the licenses of 8 cooperative banks. Three banks of Uttar Pradesh are included in this list.
RBI Canceled Banking License: Reserve Bank of India took action against many banks in the month of September. Under which 8 cooperative banks located in different parts of the country were closed. RBI canceled the licenses of 8 banks between September 20 and September 30. Also, customers have been allowed to withdraw a limited amount.
Locked on these banks
Last month, the Central Bank was the first to cancel the license of Ananthashayanam Co-operative Bank located in Trivandrum, Kerala. This action was taken on the bank on September 21. On September 22, the license of HCBL Co-operative Bank Limited (Lucknow) was cancelled. RBI came down on Lucknow’s Co-operative Bank Limited on September 30. Apart from this, last month Mallikarjuna Pattana Co-operative Bank Niamita (Maski, Karnataka), National Co-operative Bank Limited (UP), The Kapol Co-operative Bank Limited (Mumbai), Merchants Co-operative Bank Limited (Ahmedabad, Gujarat) and Nashik District Banking business of Girna Co-operative Bank Limited (Maharashtra) was also banned.
Why were the banks closed?
RBI gave similar reasons for taking action against all banks. The Central Bank said that these banks do not have sufficient capital and earning potential. If these banks continue to operate, public interest will be deeply affected. The survival of these banks is harmful for its customers.
Customers can withdraw this much money
Under DICGC regulations, every customer of these banks is allowed to avail deposit insurance claim amount of their deposits up to a monetary limit of Rs 5 lakh.
