RBI: On September 26th, Reserve announced the closing of another government bank. The RBI has been consistently taking tough action against banks over the past few days. The Central Bank has revoked the licence of a Maharashtra co-operative bank in consideration of the security of its consumers. The bank has additionally been characterised as a danger to its clients’ interests.
RBI Revokes License of Nasik District Girna Sahkari Bank
The RBI announced on Tuesday that a decision had been made to revoke the licence of the Maharashtrian Nasik District Girna Sahkari Bank Limited. Beginning on September 26, banks are prohibited from conducting banking operations. That implies that this bank won’t be able to both accept and repay deposits.The Reserve Bank claims that this bank lacks the necessary capital and earning potential. In this way, this Nashik bank complies with few of the Banking Regulation Act of 1949’s rules.
RBI Cites Public Interest Concerns as It Revokes Nasik District Girna Sahkari Bank’s License
The survival of the bank is harmful to its clients, according to RBI. The bank’s status at the moment prevents it from even paying depositors in full. The public interest will be harmed if it receives approval for banking business. Additionally, the RBI has made it clear that each customer may get a deposit insurance claim sum of up to Rs 5 lakh under the terms of the DICGC. A total of Rs 16.27 crore in insured deposits have already been made by the bank.
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