Do you have any money in this bank? RBI has cancelled its license. Know the complete details here.

 The Reserve Bank of India (RBI) has taken a big decision today. The license of a cooperative bank has been canceled. The name of the bank whose license has been canceled by the central bank is Purvanchal Cooperative Bank, which is located in Ghazipur, Uttar Pradesh. The central bank has said that Purvanchal Cooperative Bank does not have sufficient capital and earning prospects. RBI said in the statement that the Cooperative Commissioner and Registrar of Cooperative Societies of Uttar Pradesh have been asked to issue an order to close the bank and appoint a liquidator.

What will happen to those who deposit money in this bank?

Under liquidation, each depositor will be entitled to get only up to Rs 5 lakh of his deposit from the Deposit Insurance and Loan Guarantee Corporation (DICGC). RBI said that according to the data of Purvanchal Cooperative Bank, about 99.51 percent of the depositors are entitled to get their entire deposit amount from DICGC. The central bank said that the cooperative bank is unable to make full payment to its current depositors with its current financial position.

What did RBI say?

RBI has said that the bank does not have sufficient capital and earning prospects. If the bank is allowed to continue banking business in future, it will adversely affect public interest. Let us tell you that the Reserve Bank of India had taken strict action against two big private sector banks. RBI had taken action against Yes Bank and ICICI Bank and imposed a fine of crores. The banking regulator says that Yes Bank and ICICI Bank were violating many rules of the central bank. Due to this, a fine of Rs 91 lakh has been imposed on Yes Bank and Rs 1 crore on ICICI Bank.

fine imposed for this reason

RBI recently informed that both the banks were not following many guidelines. According to RBI, Yes Bank was accused of violating guidelines related to customer service and internal and office accounts. RBI came across many such cases where the bank charged many accounts for not having sufficient balance. Also, illegal activities were being carried out from internal and office accounts.

RBI found in its evaluation that this was done several times by Yes Bank during the year 2022. The bank had opened and operated some internal accounts in the name of its customers for illegal purposes like fund parking and routing customer transactions. Due to following all these instructions, a fine of 91 lakh has been imposed on the bank.