RBI Notice Reserve Bank shows strictness and now canceled the license of these banks

The Reserve Bank of India (RBI) is constantly taking action against financial irregularities and loss-making banks. Meanwhile, RBI has canceled the license of two more banks. Along with this, the central bank has canceled the license of four banks within a week and has banned their transactions. This time the Reserve Bank has taken action against Shri Sharda Mahila Sahakari Bank in Tumkur, Karnataka and Harihareshwar Bank in Satara, Maharashtra, canceling their license.
According to the central bank, these two co-operative banks do not have enough capital and earning capacity left. After which the license of these two cooperative banks has been canceled and orders have been given to close them. Please tell that the order to close the business of Harihareshwar Cooperative Bank has become effective from July 11, 2023. With this, now customers will neither be able to deposit nor withdraw money in this bank.
Account Door now has this option
After the cancellation of the license of these two banks, about 99.96 percent of the depositors ie customers of these banks will get their total deposits from the Deposit Insurance and Loan Guarantee Corporation (DICGC). At the same time, about 97.82 percent depositors (customers) of Shri Sharda Mahila Sahakari Bank will get their entire deposit capital from DICGC. At the time of liquidation, each depositor can collect his deposits up to Rs 5 lakh from DICGC. Which they will get under the deposited insurance claim amount.
RBI said this while canceling the license of banks
These banks were barred from banking related activities after the RBI canceled their license. It also includes deposit acceptance and deposit repayment, among other things. The central bank said that both the cooperative banks do not have sufficient capital and earning capacity. Hence both the banks are unable to return the entire money of their depositors in view of their current financial condition.
Earlier the license of these banks was canceled
Let us tell you that in the last one week, RBI has canceled the licenses of four banks. Earlier, the central bank had canceled the license of two cooperative banks in Maharashtra and Karnataka. Both these banks have also been closed from 5 July 2023. The banking licenses of Buldhana-based Malkapur Urban Co-operative Bank Ltd. and Bengaluru-based Sushruti Souhard Co-operative Bank Ltd. have been canceled following the Reserve Bank’s order. After this, the business of these banks also stopped from 5th July.