RBI cancelled license of another 2 banks: Visit bank immediately

The Reserve Bank of India (RBI) on Tuesday cancelled the licence of two cooperative banks Sri Sharada Mahila Co-operative Bank, Tumkur, Karnataka and Harihareshwar Sahakari Bank, Wai, Satara as the lenders do not have adequate capital and earning prospects. RBI cancelled license of another 2 banks: Visit bank immediately.

Harihareshwar Sahakari Bank ceases to carry on banking business, with effect from the close of business on July 11, 2023, the Reserve Bank of India (RBI) said in a statement. The Reserve Bank of India has said that both the banks do not have sufficient capital to continue operations, leaving no earning potential for the two banks.

It justified its conclusion that in such circumstances it was necessary to cancel their license. The Reserve Bank of India monitors the functioning of various banks to protect the interest of the customers. And takes necessary action if any lapses are found. Generally many banks come under the ambit of Reserve Bank’s action on various matters.

Accordingly, the license of two banks has now been cancelled. The order to close the business of Satara-based Harihareshwar Cooperative Bank is effective from July 11, 2023, the central bank said. 5 lakh in banks as there is deposit insurance and credit guarantee corporation insurance Customer deposits up to are safe.

After cancelling the license, both the banks have been banned from carrying out banking related activities. These banks can no longer take any kind of deposits from customers. The Reserve Bank has directed the Co-operative Commissioner and Registrar of Co-operative Societies to issue orders to stop the functioning of the concerned banks.

Those who have deposited more than Rs 5 lakh will lose money above this limit. According to the Reserve Bank, Harihareshwar Cooperative Bank’s percentage. 99.96% of the depositors will get their total amount from DICGC. Customers of this bank have received Rs 57.24 crore from DICGC till March 8, 2023.

On the other hand, Shree Sharada Mahila Sahakari Bank of Tumkur, Karnataka, has about 97.82% depositors will get full refund from DICGC. DICGC has refunded Rs 15.06 crore to the customers of this bank till June 12, 2023.

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