This bank will be closed from tomorrow, what will happen to the money of the customers

Fines are imposed against banks for non-compliance with the rules of the Reserve Bank of India (RBI). But now the bank will remain closed from tomorrow i.e. 22nd September. The Reserve Bank of India said that customers who have deposited money in this bank will not be able to withdraw money from tomorrow. In the […]
 


This bank will be closed from tomorrow, what will happen to the money of the customers

Fines are imposed against banks for non-compliance with the rules of the Reserve Bank of India (RBI). But now the bank will remain closed from tomorrow i.e. 22nd September. The Reserve Bank of India said that customers who have deposited money in this bank will not be able to withdraw money from tomorrow. In the last few days, RBI has taken action against many banks and financial institutions.

Bank’s financial condition is not good

In August, RBI canceled the license of Pune-based Rupee Co-operative Bank Ltd. Banking services will be closed after the implementation of this decision of RBI on 22nd September. In the notice issued by RBI, it has been said that the financial condition of the bank is not good.

Grounds for cancellation of license

The Reserve Bank had said that the bank would close its business on September 22. After this, bank customers will neither be able to deposit nor withdraw money from the account. Apart from this, no financial transactions will be done. It was said by RBI that the bank has neither the capital nor the possibility of earning more. This is the reason why the license of the bank is being cancelled.

What will happen to customers’ money?

Under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme of RBI, customers whose money is deposited in this bank will get Rs. Insurance cover of 5 lakhs will be available. As per this rule, if a bank is closed due to poor financial condition, the customer gets the benefit of insurance cover through DICGC on deposits up to Rs 5 lakh. This money is given to the concerned customer.

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