Bank License Canceled: Now you will not be able to withdraw money from this bank, RBI cancelled the license

Bank License Canceled: The Registrar of Co-operative Societies, Karnataka has also been requested to issue an order to close down the bank and appoint a liquidator for the bank, the RBI said in a statement on Wednesday.

Bank License Canceled: The Reserve Bank of India (RBI) has canceled the license of another bank. Taking a major action, RBI has canceled the license of Karnataka-based Karwar Urban Co-operative Bank. Karwar Urban Co-operative Bank does not have enough capital to run the bank and there is no possibility of earning for the bank. In view of the current circumstances of the bank, RBI canceled its license. After this decision of RBI, Karwar Urban Co-operative Bank will stop all types of banking activities from July 23, 2025. This simply means that the customers of Karwar Urban Co-operative Bank will not be able to deposit or withdraw money in their account immediately.

Customers will be entitled to get an amount of up to Rs 5 lakh through DICGC

RBI said in a statement on Wednesday that the ‘Registrar of Cooperative Societies, Karnataka’ has also been requested to issue an order to close the bank and appoint a liquidator for the bank. On liquidation, every depositor will be entitled to receive the deposit insurance claim amount on his deposits up to Rs 5 lakh from the ‘Deposit Insurance and Credit Guarantee Corporation’ (DICGC). RBI said that as per the data submitted by the bank, 92.9 percent of the depositors are entitled to receive the full amount of their deposits from DICGC. That is, 92.9 percent of the customers of Karwar Urban Co-operative Bank have deposits of less than Rs 5 lakh in their accounts and they will get all the money deposited in the account, under DICGC.

Even before this, RBI has canceled the licenses of many banks

DICGC has paid Rs 37.79 crore out of the total insured deposits till June 30, 2025. RBI said that the cooperative society does not have adequate capital and earning prospects. Let us tell you that RBI had earlier taken action against many banks and canceled their licenses. RBI has earlier canceled HCBL Co-operative Bank of Lucknow, Color Merchants Co-operative Bank of Ahmedabad, Ajanta Urban Co-operative Bank of Aurangabad, Imperial Urban Co-operative Bank of Jalandhar etc.

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