The Reserve Bank of India (RBI) has taken a big decision today. The license of a co-operative bank has been revoked. The name of the bank whose license has been revoked by the Central Bank is Purvanchal Co-operative Bank, located in Ghazipur, Uttar Pradesh. The Central Bank has said that Purvanchal Cooperative Bank does not have sufficient capital and earning potential. The RBI said in a statement that the Cooperative Commissioner and Registrar of Cooperative Societies of Uttar Pradesh have been asked to order closure of the bank and appointment of a liquidator.
What will happen to those who have money in this bank?
Under liquidation each depositor will get only Rs. 5 lakh will be entitled to get their deposit amount. RBI said that as per Purvanchal Cooperative Bank data, about 99.51 per cent depositors are entitled to get their entire deposits from DICGC. The central bank said that the co-operative bank with its current financial position is unable to fully repay its existing depositors.
What did RBI say?
RBI has said that the bank does not have sufficient capital and earning capacity. If the bank is allowed to continue the banking business, it will adversely affect the public interest. Let us tell you that the Reserve Bank of India took strict action against two big private sector banks. The RBI imposed a penalty of crores while cracking down on Yes Bank and ICICI Bank. The banking regulator says Yes Bank and ICICI Bank are violating several central bank regulations. Because of this, a fine of 91 lakh rupees has been imposed on Yes Bank and 1 crore rupees on ICICI Bank.
Due to this penalty has been imposed
The RBI had recently informed that both the banks were not following several guidelines. According to the RBI, Yes Bank was accused of violating guidelines related to customer service and internal and office accounts. Many such cases came before the RBI in which the bank charged several accounts due to insufficient balance. Also illegal activities were taking place from internal and office accounts.
RBI in its assessment found that this was done several times by Yes Bank during the year 2022. The bank opened and operated certain internal accounts in the name of its customers for illegal purposes such as parking funds and routing customer transactions. A fine of Rs 91 lakh has been imposed on the bank for not complying with all these instructions.
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