RBI: Different types of instructions are given to the concerned banks by the RBI. Penalties are imposed on banks for non-compliance of these instructions. Recently, the Central Bank had canceled the license of a bank. After this the bank was closed from 22 September 2022.
RBI Canceled Bank License: The case of sinking of two big banks in America is currently in discussion. Silicon Valley Bank and Signature Bank went bankrupt in America. This has increased the concern of investors around the world. But do you remember that the Reserve Bank of India had recently canceled the license of a bank. After this, a date was given to the customers to withdraw the money and settle the work related to the bank.
Different types of instructions to banks
Different types of instructions are given by RBI to the concerned banks. Penalties are imposed on banks for non-compliance of these instructions. But recently the Central Bank had canceled the license of a bank. After this the bank was closed from 22 September 2022.
The license of cooperative bank was canceled
RBI had decided to cancel the license of Pune based Rupee Co-operative Bank Limited in August 2022. After this, the banking service of the bank was discontinued from 22 September 2022. After this, people quickly withdrew their money deposited in the bank. But still there were some people who could not withdraw their money.
Why was the license cancelled?
The Reserve Bank had told at that time that the bank would close its business from 22 September 2022. After this the customers will neither be able to deposit nor withdraw their money. Apart from this, you will not be able to do any kind of financial transaction. It was told by the RBI that the bank does not have sufficient capital and further earning potential. For this reason the license of the bank is being cancelled.
