RBI has cancelled the license of this bank, know what will happen to the deposited money

Banaras Co-Operative Bank: If you have a bank account in Banaras Mercantile Cooperative Bank, Varanasi, then this news is very important for you. In fact, the Reserve Bank of India (RBI) has canceled the license of Banaras Mercantile Cooperative Bank, Varanasi due to its deteriorating financial condition. According to the news of Bhasha, while cancelling the license, RBI said that as a result, the bank has ceased to do banking business after business hours on July 4, 2024. The Cooperative Commissioner and Registrar of Cooperative Societies of Uttar Pradesh have also been requested to issue an order to close the bank and appoint a liquidator.

Entitled to get full deposit amount

According to the news, the country's central bank (RBI) said that according to the data submitted by the bank, 99.98 percent of the depositors are entitled to get their entire deposit amount from the Deposit Insurance and Credit Guarantee Corporation (DICGC). On liquidation, every depositor will be entitled to receive a deposit insurance claim amount of up to Rs 5 lakh on his deposits from the DICGC. The RBI said that the cooperative bank does not have adequate capital and earning prospects. Its continuation is not in the interests of its depositors.

The bank will be unable to make full payment to the depositors

The Reserve Bank said that due to its current financial position, the bank will be unable to make full payment to its depositors. The DICGC has already paid Rs 4.25 crore out of the total insured deposits under the provisions of the DICGC Act on the basis of the wishes received from the concerned depositors of the bank till April 30.

Last month, the license of this bank was also canceled

The Reserve Bank of India (RBI) canceled the license of Purvanchal Sahakari Bank located in Ghazipur, Uttar Pradesh in June 2024. RBI took this action due to Purvanchal Sahakari Bank not having adequate capital and earning prospects. RBI had said that if the bank was allowed to continue banking business further, it would have an adverse impact on public interest.