Bank License Cancelled: RBI said that the bank is not in a position to return the money of the account holders. If the bank is allowed to operate further, people may suffer huge losses.
Bank License Cancelled: Reserve Bank of India (RBI) has taken strict action against another bank. RBI has canceled the license of the bank due to violation of rules. While taking this decision, the Central Bank said that the financial condition of the bank is not good.
This bank is not in a position to return the entire money to the account holders. This action has been taken on Jai Prakash Narayan Nagari Cooperative Bank Basmathnagar of Maharashtra. The license of the bank has been canceled with effect from February 6, 2024.
You will get back up to Rs 5 lakh
RBI has directed the Commissioner for Cooperation and Registrar of Cooperative Societies of Maharashtra to close the bank (Jai Prakash Narayan Nagari Sahakari Bank Basmathnagar) and appoint a liquidator.
After the liquidation process is over, payment will be made to the account holders of the cooperative bank through deposit insurance claims. Under this, people will get back their deposits up to Rs 5 lakh. This payment will be made by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
99.78 percent account holders will get full money
The Reserve Bank said that according to the bank’s records, about 99.78 percent account holders will get the entire money back. The Central Bank said that Jai Prakash Narayan Nagari Cooperative Bank does not have funds for operations. Besides, there doesn’t seem to be any way to earn money from it. Therefore it is not in a position to return people’s money. If the bank is allowed to operate further, the public may suffer huge losses. Therefore, it was decided to stop its banking services.
The bank will neither accept deposits nor make payments
RBI said that considering the condition of the bank, instructions have been given to close it from Tuesday, 6 February 2024. With this, people’s interests will be protected. After this order, the banking services of the co-operative bank have now stopped with immediate effect. The bank will neither accept deposits nor make any kind of payment.