From Our Bureau
NEW DELHI: The Reserve Bank of India (RBI) has cancelled the licence of the Kapol Cooperative Bank Limited of Mumbai with effect from Monday, September 25. From Tuesday, the bank will not be allowed to do transactions. This is yet another bank whose licence has been just cancelled.Why did RBI cancel the bank’s license?RBI said that this cooperative bank has adequate capital and earning potential. The Kapol Co-operative Bank Limited is also unable to make full payments to its depositors with the current financial situation. In this situation, there is a violation of the provisions of Section 11 (1), Section 22 (3) (d) along with Section 56 of the Banking Regulation Act 1949. Apart from this, the Reserve Bank said, “The survival of the bank is harmful for its depositors.” The bank will no longer be allowed to accept deposits and repay deposits.
NEW DELHI: The Reserve Bank of India (RBI) has cancelled the licence of the Kapol Cooperative Bank Limited of Mumbai with effect from Monday, September 25. From Tuesday, the bank will not be allowed to do transactions. This is yet another bank whose licence has been just cancelled.Why did RBI cancel the bank’s license?RBI said that this cooperative bank has adequate capital and earning potential. The Kapol Co-operative Bank Limited is also unable to make full payments to its depositors with the current financial situation. In this situation, there is a violation of the provisions of Section 11 (1), Section 22 (3) (d) along with Section 56 of the Banking Regulation Act 1949. Apart from this, the Reserve Bank said, “The survival of the bank is harmful for its depositors.” The bank will no longer be allowed to accept deposits and repay deposits.
What will happen to customers’ money?
The license of this cooperative bank located in Mumbai has been cancelled. Despite this, each depositor can claim deposits up to Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC). Claiming more deposit amount than this will not be allowed. According to the data, currently about 96.09% customers are entitled to receive the full amount of deposits from DICGC.
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