Do you have an account with this bank? Direct action by RBI against another bank after the bank in Pune was hit

RBI: The Reserve Bank of India (RBI) today canceled the license of Lakshmi Sahakari Bank Limited in Solapur. The reasons given by RBI are that banks do not have sufficient capital and banks are not following the rules. Each depositor will be able to receive an amount up to Rs 5 lakh (deposit insurance claim […]
 


Do you have an account with this bank?  Direct action by RBI against another bank after the bank in Pune was hit

RBI: The Reserve Bank of India (RBI) today canceled the license of Lakshmi Sahakari Bank Limited in Solapur. The reasons given by RBI are that banks do not have sufficient capital and banks are not following the rules. Each depositor will be able to receive an amount up to Rs 5 lakh (deposit insurance claim amount). ,

RBI issued a statement saying, “Lakshmi Sahakari Bank Ltd., Solapur has been prohibited from carrying out financial transactions. This action has been taken under Section 56 of the Banking Regulation Act, 1949. RBI has ordered the Co-operative Commissioner and Registrar of Co-operative Societies to close the bank. Along with this, it has also been asked to appoint a liquidator for the bank.

License canceled due to lack of capital

 

According to reports, the Reserve Bank of India (RBI) on Thursday canceled the license of Maharashtra-based Laxmi Sahakari Bank, citing lack of adequate capital. “The license of Laxmi Sahakari Bank Limited has been canceled as the bank does not have sufficient capital and the bank is unable to repay the money of the depositors. Presently the financial position of the bank is very bad. If bank financial operations are allowed to continue, depositors will suffer,” RBI said.

You have to apply to get the money back

 

As per the DICGC Act 1961, customers depositing money in the bank are provided with insurance cover for deposits up to Rs 5 lakh. DICGC is a subsidiary of Reserve Bank of India. Which provides financial security to the customers of co-operative banks. In such a situation, the customer can get a refund under the insurance claim on depositing Rs 5 lakh. That is, depositors of more than Rs 5 lakh will not be able to get a full refund, because only up to Rs 5 lakh can be repaid.

However, for this account holders will have to apply for withdrawal from the bank according to their deposit amount. According to the Reserve Bank, if we look at the data provided by Lakshmi Co-operative Bank, 99 percent of the deposits of its depositors fall under the claim category. In this case, they will get their full amount back.

110 years old bank also closed

Earlier, RBI had recently canceled the license of Pune-based Rupee Co-Operative Bank Ltd. RBI had also canceled the license of this bank due to poor financial condition. According to the decision of RBI, all the banking services of this 110-year-old bank have been closed from 22 September.

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