RBI Revoked Bank License: The RBI revoked this bank's license. Verify the bank's name very now

RBI Revoked Bank License: The RBI revoked this bank's license. Verify the bank's name very now

RBI Revoked Bank License: The RBI revoked this bank's license. Verify the bank's name very now

Reserve Bank of India (RBI) Cancels Bank License: On January 12, the RBI announced that it was canceling the bank's license due to its precarious financial situation.

On January 12, the Reserve Bank of India (RBI) announced that it has revoked The Hiriyur Urban Co-operative Bank's license, citing the bank's precarious financial situation. According to a press statement from the RBI, "the bank's survival is damaging to the interests of its depositors as the bank, assuming its current financial position, would be able to make full payments to its former depositors." If the bank is permitted to go on with its banking operations, the public interest will suffer.

Effect on Clientele

According to RBI, the bank is immediately forbidden from engaging in "banking" activities, such as accepting and returning deposits, upon the license termination. According to the central bank, each depositor would be eligible to collect the deposit claim amount of his deposits from the Deposit Insurance as well as Credit Guarantee Corporation (DICGC) upon liquidation, subject to a maximum value of Rs 5 lakh, in accordance with the DICGC Act 1961's stipulations.

Customer is entitled to the whole amount.

Based on the information provided by the bank, 99.93 percent of depositors have the right to get their whole deposit back from DICGC. As per the press release, DICGC has reportedly paid out Rs 224.53 lakh of the total insured savings up to September 30, 2023, in accordance with the desires expressed by the individual bank depositors.