New Delhi. The Reserve Bank of India (RBI) is taking strict action on weak banks these days. Under this, RBI has canceled the license of Subhadra Local Area Bank in Kolhapur, Maharashtra. RBI has said that the bank was not operating properly, which could have caused losses to the bank’s present and future depositors. RBI has stated that Subhadra Local Area Bank has not complied with the minimum networth requirement during the two quarters of FY 2019-20, due to which it has had to take a strict decision to rate the license of the bank. According to RBI, she will now apply to the High Court to close this bank. RBI has also closed another bank earlier this month.
Depositors’ money is currently stuck
Although the RBI has said that Subhadra Local Area Bank has sufficient liquidity to return the money to depositors, but the money is stuck at the moment. When the RBI takes the next decision about the bank, then only you will know how and how much money will be received back. RBI’s decision to cancel the license of Subhadra Local Area Bank has come into effect from December 24, 2020. After this, the bank will no longer be able to carry out any banking activities. According to RBI, after the cancellation of license, the bank has been banned from doing any kind of banking or any other business with immediate effect.
What will happen to depositors’ money
RBI said that depositors of Subhadra Local Area Bank need not panic. The bank has sufficient liquidity to return the account holders. All the deposits will be returned to the bank account holders by the bank. Usually, after canceling the license of a bank, RBI starts the liquidation process of that bank. With this, the DICGC Act becomes effective. Under this, the existing customers and depositors of the bank are given their money. Under DICGC, depositors of this bank get a maximum of Rs 5 lakh back on the basis of their deposits. Important News: Avoid these mistakes while filling the check, otherwise it can cause huge losses
A few days ago, the license of crores of Janata Cooperative Bank was canceled
In the first week of December, the RBI had canceled the license of a cooperative bank in Maharashtra. ABRI had also canceled the license of Karad Janata Co-operative Bank in Maharashtra. While canceling the license of the troubled Karad Janata Co-operative Bank, RBI had said that with not enough capital, the bank does not see any future income potential. Due to this, RBI had decided to cancel the license of this bank.
