RBI took this action under Section 56 of the Banking Regulation Act, 1949 and said that this bank does not have sufficient earning capacity nor does this co-operative bank have working capital to continue. RBI has issued a notice informing everyone that now the work of this bank is being stopped. It has been clearly stated in the notice that the services of United India Co-operative Bank Limited have been stopped since 19th July.
The Central Bank Reserve Bank of India (RBI) monitors the working of all the banks of the country. Whenever a bank does its arbitrary by ignoring the rules of RBI, the central bank cancels its license. RBI has done the same recently with a bank. If you also have an account in that bank, then you must read this news. This bank is a co-operative bank (United India Co-operative Bank) of Nagina, Bijnor, Uttar Pradesh. Whose business was banned by the central bank. Along with this, orders have been issued by the Commissioner and Cooperative Registrar to close the bank.
Canceled license of United India Co-operative Bank
RBI took this action under Section 56 of the Banking Regulation Act, 1949 and said that this bank does not have sufficient earning capacity nor does this co-operative bank have working capital to continue. RBI has issued a notice informing everyone that now the work of this bank is being stopped. It has been clearly stated in the notice that after July 19, the services of United India Co-operative Bank Limited (United India Co-operative Bank) have stopped. For this, the RBI passed the order on 14 July. That is, now the bank will neither be able to deposit anyone’s money nor will it be able to pay anyone.
Order for depositors
RBI has said in its order that United India Co-operative Bank Limited will have to return their capital to all the depositors. Under the Credit Guarantee Rule, claims can be made to refund the amount up to five lakh rupees. The central bank said in its order that this order has been taken in view of the condition of the bank. If the bank is still allowed to continue its work, then its customers will have to bear the consequences. Because at present the bank is unable to make full refunds to all its depositors. If the work is continued in such a situation, the burden on the bank will only increase. That is why it is better to close the United India Co-operative Bank Limited.
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