RBI Revoked License: This bank's license was revoked by the RBI. Please verify the bank's name very away

 RBI Revoked License: This bank's license was revoked by the RBI. Please verify the bank's name very away

 RBI Revoked License: This bank's license was revoked by the RBI. Please verify the bank's name very away

RBI Canceled License: A bank has had its license revoked by the Reserve Bank after significant action against it. Understand what will happen to the deposits and funds held by clients who have accounts with this bank.

The Reserve Bank of India (RBI) revoked a bank's license on Monday, taking significant action against the financial institution. Shankarrao Pujari Nutan Nagari Cooperative Bank Limited, a bank with its headquarters in Kolhapur, Maharashtra, has had its license revoked. The bank lacks enough capital and revenue streams, which is why the RBI took this action. The RBI has mandated that the bank cease all commercial operations as of December 4, 2023.

The bank lacked sufficient capital.

The Reserve Bank of India released a formal statement on the subject, stating that as of December 4, Shankarrao Pujari Nutan Nagari Sahakari Bank Limited, Kolhapur, is unable to provide any sort of banking services. Furthermore, the bank has completely prohibited accepting deposits or payments. The Central Bank disclosed the judgment, stating that this cooperative bank lacked the capital necessary to provide banking services. In addition, the bank has not offered any clear strategy for how it will continue to make money. In this case, the bank was not abiding with RBI regulations, and the RBI has decided to revoke the bank's license in order to protect the interests of its clients.

What will happen to the money that clients pay?

The primary concern that has emerged after the Reserve Bank's cancellation of this bank's license is what will happen to the money that clients have placed with the institution. Depositors Insurance and Credit Guarantee Corporation (DICGC) offers insurance coverage to bank clients for deposits up to Rs 5 lakh. A division of the Reserve Bank of India, DICGC offers insurance coverage for amounts up to Rs 5 lakh. Customers who have deposited Rs 5 lakh or less with the bank would get their whole money back in such a scenario. Customers who own more than Rs 5 lakh, however, are only eligible to get up to Rs 5 lakh in benefits.

These banks are subject to a fine

Many banks have recently faced steep penalties from the Reserve Bank of India for breaking the regulations. In doing so, the RBI has fined three cooperative banks, including Bank of America and HDFC Bank. In addition, the RBI has fined the following banks: The Konark Urban Cooperative Bank Limited; Jijamata Mahila Cooperative Bank Limited; Shri Lakshmi Kripa Urban Cooperative Bank Limited; and The Chembur Nagarik Cooperative Bank Limited.