RBI took another bank in the middle: license cancelled, now this option for account holders
RBI canceled the license of Lakshmi Sahakari Bank: RBI canceled the license of Lakshmi Sahakari Bank: The Reserve Bank of India has canceled the license of Lakshmi Sahakari Bank Limited, located in Solapur, Maharashtra. The RBI on Thursday canceled the license of the cooperative bank due to lack of sufficient capital. The central bank has said that the continuity of the bank is not in the interest of the depositors.
Reserve Bank of India (RBI) ) has canceled the license of co-operative banks in Maharashtra. Along with this, the Central Bank (Co-operative Bank) has also clarified on the claim of withdrawal from the accounts of the depositors. In this regard, a statement has been issued by the central bank saying that now bank depositors can claim up to Rs 5,00,000.
right of depositors
The Reserve Bank of India (RBI) on Thursday canceled the license of Lakshmi Co-Operative Bank Ltd., based in Solapur, Maharashtra. After this the bank will not be able to do any other financial work including business or transactions. RBI said in an announcement in this regard that every depositor would be entitled to claim up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under the provisions of the DICGC Act, 1961.
License canceled due to lack of capital
According to reports, the Reserve Bank of India (RBI) on Thursday canceled the license of Maharashtra-based The Lakshmi Co-operative Bank citing lack of adequate capital. “The license of Lakshmi Co-operative Bank Ltd has been canceled as it does not have adequate capital and earning capacity and the continuity of the bank is not in the interest of its depositors,” RBI said in a statement.
You have to apply to get the money back
Actually, under the DICGC Act 1961, insurance cover is provided to those customers whose money is deposited in the bank after depositing Rs 5 lakh. Let us tell you that DICGC is a subsidiary of Reserve Bank, which provides financial security to the customers of co-operative banks. In such a situation, the customer can get the money back under the insurance claim after depositing Rs 5 lakh. That is, depositors above Rs 5 lakh will not be able to get a full refund, because only up to Rs 5 lakh can be refunded.
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 in this 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, which has now expired. RBI also canceled the license of this bank due to bad financial condition. According to the decision of RBI, all the banking services of this 110-year-old bank have been closed from 22 September.