Bank License canceled : The Reserve Bank of India (RBI) has canceled the license of Durga Co-operative Urban Bank, which is based in Vijayawada. Because the bank lacks adequate capital and earning potential, the RBI took this action. After business closes on November 12, 2024, the bank will cease actions, according to the RBI. In addition, the central bank has requested that the Registrar of Cooperative Societies of Andhra Pradesh and the Commissioner for Cooperation issue an order closing the bank and designating a liquidator.
The bank has not complied with the 1949 banking supervision Act’s requirements, the RBI says. The interests of its depositors are negatively impacted by Durga Cooperative Urban Bank’s continued existence. The bank’s current financial situation will prevent it from fully compensating its current depositors.
The money of depositors is protected up to Rs 5 lakh.
Table of Contents
Every Durga Cooperative Urban Bank depositor will be eligible to receive the deposit insurance claim amount on his savings up to a maximum of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) upon liquidation. 95.8% of depositors are entitled to retrieve their whole deposit amount from DICGC, according to statistics provided by the bank, the RBI stated. As of August 31, 2024, the DICGC had paid out Rs 9.84 crore from all protected deposits.
Because of its worsening financial situation, the RBI had earlier in July revoked the license of Shimsha Sahakara Bank Niyamiti, Maddur, which is situated in Karnataka. According to a statement released by the RBI, the bank will cease banking activities on July 5, 2024, after business hours conclude. Additionally, a request was made for the Karnataka Registrar of Cooperative Societies to choose a liquidator and issue an order dissolving this cooperative bank.
This Bank License canceled
In June this year, the RBI cancelled the Purvanchal Sahakari Bank’s license in Ghazipur, Uttar Pradesh. Purvanchal Sahakari Bank, according to the central bank, lacks sufficient capital and earnings potential.
you join our tazatimesnews Telegram Channel
you join our whatsapp channel
Next News Read – Income Tax Department can give warning to taxpayers for these 5 faults; check quickly
Next News Read – Passport Applications 2024 : The facility to get a passport made will be available at home; a mobile van will arrive after arranging the appointment.
