RBI Cancel License: Bad news for these bank customers! RBI cancelled license of 2 other banks, customers cannot take cash, check banks names and reasons inside.
RBI cancelled 2 banks license: The Reserve Bank of India is continuously taking action against banks which do not follow the rules. On September 21, RBI had canceled the license of Ananthashayanam Co-operative Bank Limited, Thiruvananthapuram. Now the Central Bank has also canceled the licenses of two other banks. His banking business has been banned. According to RBI, if banks are allowed to continue their banking business, it will affect the interests of the general public. Now RBI has canceled the license of 2 more banks. These include Mallikarjun Pattana Co-operative Bank of Karnataka and National Co-operative Bank Limited of Bahraich, UP.
RBI canceled the license for this reason
RBI said that these banks do not have capital and earning capacity. Both these banks failed to comply with the provisions of Section 11 (1) and Section 22 (3) (D) of Section 56 of the Banking Regulation Act 1949. Due to its financial condition, this bank is also unable to make full payments to the customers. Due to which RBI has banned public dealing of these banks.
Customers will be affected
The Reserve Bank has banned the banking business of Mallikarjun Pattana Co-operative Bank Niamhita and National Co-operative Bank Limited from September 22. The bank can no longer take cash or make payments. Under Deposit Insurance and Credit Guarantee Corporation (DICGC) rules, banks are entitled to claim money on their deposits up to Rs 5 lakh.
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