The central bank Reserve Bank of India (RBI) monitors the functioning of all the banks in the country. Whenever a bank ignores the rules of RBI and does its arbitrariness, the central bank cancels its license. RBI has recently done the same with a bank. If you also have an account in that bank, then you must read this news. This bank is a cooperative bank (United India Co-operative Bank) located at Nagina, Bijnor, Uttar Pradesh. Whose business was banned by the central bank. Along with this, orders have been issued by the Commissioner and Registrar of Cooperatives to close the bank.
United India Co-operative Bank’s license canceled
The RBI took this action under Section 56 of the Banking Regulation Act, 1949 and stated that the bank does not have sufficient earning capacity nor does the 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 had passed an 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, a refund of up to Rs 5 lakh can be claimed. The central bank said in its order that this order has been taken keeping in view 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 not able to give full refund to all its depositors. In such a situation, if the work is continued then the burden on the bank will increase. That’s why it is better to close United India Co-operative Bank Limited.
