The Central Bank of India, Reserve Bank of India (RBI) has recently taken strict action on a large cooperative bank and canceled its license. After this action, millions of customers of the bank have lost their money and now the risk of drowning their money has increased. The RBI has clarified why this action was taken and what will be the money of the customers of the concerned bank, has now become the biggest.
RBI action: What happened?
Ahmedabad in Gujarat Color merchants co-operative bank The license of RBI has been canceled. The bank had a shortage of deposit capital required to continue banking work in future, due to which this drastic step was taken. As a result, the bank will be unable to return the entire money to its customers.
What will be the money of customers?
The RBI has requested the registrar of the cooperative societies of Gujarat to close the bank in this case and also ordered the appointment of a Liquidator. Now the depositors will get some part of their deposited money. According to the rules of DICGC (Deposit Insurance and Credit Guarantee Corporation), customers can get back up to five lakh rupees. Customers who have less than five lakh rupees deposits in their account will get the full amount, while those who have more than five lakh rupees deposits in the account will get only five lakh rupees.
How to get money under DICGC?
According to DICGC, 98 percent of the amount deposited in the bank is in accounts with less than Rs 5 lakh. These customers will get the entire amount back, but only 2 percent of the customers, who have more than Rs 5 lakh in their account, will get back only 5 lakh rupees. Therefore, the customers who are more than five lakh rupees in their account are afraid of losing the rest of their money. DICGC has given the insured deposit of more than Rs 13 crore to the concerned depositors of this bank.
What did RBI say?
The RBI said that the reason for cancellation of this cooperative bank’s license was that the bank did not have enough capital and its possibilities of earning were also weak. Due to this, banking work could also be affected. Under the Banking Regulation Act, this bank did not fulfill several conditions, and that is why this drastic step had to be taken.
What will happen now?
After the RBI action, this cooperative bank will not be able to do any kind of transaction. The process of acceptance and repayment will also be affected due to the shutdown of banking services. The RBI believes that if the bank was allowed to work, it could have negatively affected the common people.
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