RBI Cancel License: Reserve Bank of India (RBI) has canceled the banking license of Girna Sahakari Bank Limited of Nashik district. The central bank has taken this decision due to the financial condition of the bank and lack of profitable operation. Bank cannot do any banking activity due to cancellation of license by RBI
RBI has canceled the banking license of Girna Co-operative Bank Limited of Nashik district.
RBI Cancel License: Reserve Bank of India (RBI) has canceled the banking license of Girna Sahakari Bank Limited of Nashik district. The central bank has taken this decision due to the financial condition of the bank and lack of profitable operation. Due to cancellation of license by RBI, the bank cannot do any banking activity. He can neither deposit nor give cash.
The RBI action has prompted the Cooperative Commissioner and Registrar in Maharashtra to initiate proceedings to wind down the bank and appoint a liquidator. RBI said that according to the data given by the bank, 99.92 percent of the depositors are entitled to get their money back from DICGC. RBI also pointed out that considering the current financial situation, allowing the bank to continue its operations would have been detrimental to depositors.
This action on Girna Co-operative Bank Limited has been taken in view of the poor financial condition of the bank and non-compliance of RBI instructions. According to RBI the bank does not have capital. There is no source of income either. This is the reason why the Reserve Bank has canceled the license.
Customers will get this much money
Deposit insurance cover of Rs 5 lakh is available on the money deposited by customers in the bank. Your money will not be lost up to Rs 5 lakh, it is provided by Deposit Insurance and Credit Guarantee Corporation (DICGC). DICGC is a subsidiary of the Reserve Bank.
Before this, these banks also canceled their license
RBI has canceled the license of Mumbai based Kapol Co-operative Bank Limited. Earlier on September 21, RBI had canceled the license of Ananthasayanam Co-operative Bank Limited, Thiruvananthapuram. Apart from this, RBI has recently canceled the licenses of two more banks. These include Mallikarjun Pattana Co-operative Bank of Karnataka and National Co-operative Bank Limited of Bahraich, UP.
