RBI canceled the license of this bank, this will affect the customers
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rbi: Another strict decision has been taken by the Reserve Bank of India. The apex bank has canceled the license of Sumerpur Mercantile Urban Co-operative Bank located in Pali, Rajasthan. The reason for this is that this bank does not have sufficient capital and earning potential. The Reserve Bank said in a statement that the Registrar of Cooperative Societies, Rajasthan has also been requested to issue an order to close the bank and appoint a liquidator. On liquidation, every depositor will be entitled to receive deposit insurance claim amount of up to Rs 5 lakh of his deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The Reserve Bank said that as per the bank’s data, 99.13 per cent of depositors are entitled to receive the full amount of their deposits from DICGC. Giving the reason for canceling the license, the Reserve Bank said that Sumerpur Mercantile Urban Cooperative Bank does not have sufficient capital and earning potential.
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The bank has already paid Rs 45.22 crore
The Reserve Bank said that till November 30 last year, DICGC had paid ₹45.22 crore of total insured deposits under the provisions of Section 18A of the DICGC Act, 1961, based on the wishes received from the respective depositors of the bank. Now, due to cancellation of the license of the bank, Sumerpur Mercantile Urban Cooperative Bank Limited Sumerpur Pali will not be allowed to do any kind of banking business. This also includes accepting deposits and making payments.
Two days ago RBI had taken action against three including State Bank
Two days ago, Reserve Bank of India had taken strict action against State Bank of India (SBI), Canara Bank and City Union Bank. A fine of Rs 2 crore was imposed on SBI for violation of certain norms related to Depositor Education Awareness Fund Scheme, 2014. Apart from this, a fine of Rs 66 lakh was imposed on City Union Bank Limited for not following some instructions of RBI related to income recognition, asset classification and loan related provisions, provisions regarding non-performing loans (NPAs) and protecting its customers. .
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