GulfHindi English Desk: The Reserve Bank of India (RBI) has recently cancelled the licenses of two cooperative banks 👉Shri Sharada Mahila Sahakari Bank in Tumkur, Karnataka, and Harihareshwar Sahakari Bank in Satara, Maharashtra. According to the RBI, these banks did not have ‘adequate capital and earning prospects’. The order to cease banking operations came into effect on July 11, 2023.
Almost 99.96% of depositors in Harihareshwar Sahakari Bank and approximately 97.82% of depositors in Shri Sharada Mahila Sahakari Bank will be covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) for their deposits.
Under the DICGC guarantee, each depositor will be eligible to receive insurance claims for deposits up to five lakh rupees.
After the cancellation of licenses, these banks are prohibited from carrying out banking-related activities, including accepting deposits and making repayment of deposits, among other things.
It is worth noting that the RBI has taken action against several banks in the previous financial year. Some banks had their licenses cancelled, and heavy penalties were imposed on 114 banks.
Here is a table with important information about the cancelled banks:
Bank Name | Date of License Cancellation | Percentage of Depositors Covered by DICGC
————————————————————————
Shri Sharada Mahila Sahakari Bank, Tumkur, Karnataka | July 11, 2023 | 97.82%
Harihareshwar Sahakari Bank, Satara, Maharashtra | July 11, 2023 | 99.96%
Additionally, the RBI has cancelled the licenses of other banks in the 2022-23 financial year, including Mudhol Sahakari Bank, Millath Sahakari Bank, Rupi Sahakari Bank, Deccan Sahakari Bank, Lakshmi Sahakari Bank, and Babaji Date Mahila Shahari Bank.
en.gulfhindi.com News Summary
👉RBI has cancelled the licenses of two cooperative banks, Shri Sharada Mahila Sahakari Bank in Tumkur, Karnataka and Harihareshwar Sahakari Bank in Satara, Maharashtra.
👉These banks did not have sufficient capital and earnings prospects.
👉The order for the closure of the banks came into effect on July 11, 2023.
👉Nearly 99.96% of depositors of Harihareshwar Sahakari Bank and 97.82% of depositors of Shri Sharada Mahila Sahakari Bank will be covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
👉Under DICGC’s guarantee, each depositor will be eligible to claim up to five lakh rupees for their deposits.
👉After the cancellation of the licenses, the banks have been prohibited from engaging in banking activities, including accepting deposits and making repayments.
👉In the previous financial year, RBI took action against several banks, including cancelling licenses and imposing heavy penalties on 114 banks.
👉The table provides information on the cancelled licenses of Shri Sharada Mahila Sahakari Bank and Harihareshwar Sahakari Bank.
👉The table also lists the names of other banks cancelled by RBI in 2022-23.
👉Related post.
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