RBI Cancels Bank licence: The RBI said that around 79% of the depositors are entitled to receive the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
RBI Cancels Bank Licence: Reserve Bank of India (RBI) canceled the license of another bank. The central bank canceled the license of Babaji Date Mahila Sahakari Bank Ltd., Yavatmal, Maharashtra. The Reserve Bank said that these lenders do not have sufficient capital and earning potential, in view of which this step has been taken.
79% depositors will get full money
Citing data provided by the bank, the RBI said that about 79% of depositors are entitled to receive the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). DICGC has already paid Rs 294.64 crore of the total insured deposits till October 16, 2022.
5 lakh rupees deposited in bank safe
Explain that DICGC is a wholly owned subsidiary company of RBI, which provides insurance cover up to Rs 5 lakh on bank deposits. It is a combination of both principal and interest. DICGC provides insurance coverage on all types of deposits including savings, fixed, current, recurring in your bank.
Deposit insurance introduced by DICGC covers all commercial banks, including local area banks and regional rural banks as well as co-operative banks of all states and union territories.
Bank licence canceled
Consequent to the cancellation of its license, Babaji Date Mahila Sahakari Bank Ltd. has been prohibited from carrying on the business of ‘Banking’, which includes, inter alia, barring it from taking deposits and making payments with immediate effect.
Announcing the cancellation of the license of Babaji Date Mahila Sahakari Bank from the close of business on November 11, 2022, the RBI said the bank does not have sufficient capital and earning potential. The Reserve Bank said, the bank with its current financial position would be unable to make full payments to its existing depositors and public interest would be adversely affected if the bank is allowed to carry on its banking business.
