Due to poor financial condition and non-compliance of rules, RBI canceled the license of Rupee Co-Operative Bank

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Due to poor financial condition and non-compliance of rules, RBI canceled the license of Rupee Co-Operative Bank

New Delhi : After two days, another co-operative bank is going to be closed. The RBI has ordered the closure of Rupee Co-operative Bank Ltd, Pune. The services of this bank will stop after September 22. This bank is accused of not following the rules of the Reserve Bank. The customers of this bank have only till 22 September 2022. After that date the customer cannot withdraw the money deposited in the bank. The Reserve Bank of India keeps on imposing fines on many banks of the country from time to time for not following the rules. If the ignorance of the rules increases, then the licenses of some banks are even canceled.

Customers will not be able to withdraw
The Reserve Bank had issued a press release on August 10, saying to cancel the license of this bank. It was told in the release that the license of Pune-based Rupee Sahakari Bank Limited will be canceled after six weeks. This deadline is till 22 September 2022. Now after two days all the branches of the bank will be closed. Also, customers will not be able to withdraw their money. Even before this, in view of the poor financial condition of many banks, RBI has canceled their licenses.

why license canceled
The financial condition of Pune’s Rupee Co-Operative Bank has become very bad. Also, he had no means of earning. According to RBI, there is no capital left with the bank. In such a situation, RBI has canceled the license of this bank itself.
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What will happen to the customers?
As per RBI norms, there is an insurance cover on deposits of customers up to Rs 5 lakh in banks. Customers whose money is deposited in Rupee Sahakari Bank Limited will get insurance cover on deposits up to Rs 5 lakh. This insurance is under the Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance scheme. It is to be noted that DICGC is a subsidiary of the Reserve Bank, which provides financial security to the customers of the Co-operative Bank. In such a situation, on the deposit of Rs 5 lakh of an account holder, DICGC gives him the full insurance claim. If the amount of more than five lakh rupees of a customer is stuck, then only five lakh rupees will be reimbursed to him.

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