RBI has recently canceled the license of this bank, which has had a huge impact on the customers. According to the rules of RBI, now customers will be able to withdraw only Rs 5 lakh from the bank.
Many decisions regarding banks have been taken from time to time by the Reserve Bank of India. Now RBI has canceled the license of another bank. Those customers who have an account in this bank may face problems. The Reserve Bank of India (RBI) has canceled the license of ‘The Kapol Co-operative Bank Limited’ of Mumbai.
The bank does not have capital
The central bank has said that the bank does not have sufficient capital and there is no earning potential, due to which RBI has taken this decision.
Bank will not be able to make deposits and withdrawals
The Reserve Bank said in a statement that with the cancellation of the license, the cooperative bank has been immediately banned from banking business, which includes accepting deposits and returning deposits.
Orders given to close the bank
According to the statement, the Additional Secretary of the Ministry of Cooperation and the Central Registrar of Cooperative Societies have also been requested to issue an order to close the bank and appoint a liquidator for the bank.
Customers will get Rs 5 lakh
The Reserve Bank said that every depositor will be entitled to receive deposit insurance claim amount up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). In this way, about 96.09 percent of the depositors of the bank will be entitled to get their entire deposit amount from DICGC.
Curbs imposed on Color Merchants Cooperative Bank
Apart from this, the Reserve Bank of India (RBI) has imposed several restrictions in view of the deteriorating financial condition of Ahmedabad-based Color Merchants Cooperative Bank, in which a customer has been allowed to withdraw only a maximum of Rs 50,000. RBI said in the statement that the restrictions imposed by it have come into effect with the closure of banking business on September 25. These will remain in force for six months.
Bank cannot give loan
The central bank said that Color Merchants Cooperative Bank can neither give loans nor renew old loans without its prior permission. Apart from this, it has also been barred from making any investment and accepting new deposits. .
Customers can withdraw only Rs 50,000
RBI has said that a depositor will not be allowed to withdraw more than Rs 50,000 from his total deposits within the bank.
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