RBI action: These 4 banks are closed forever, RBI canceled the license, do you have an account in any of them?

RBI has taken action against many banks in April. Four banks have been closed permanently. Heavy monetary fines have been imposed on 8. Let’s find out if your account is among them?

Bank license canceled: The Reserve Bank of India (RBI) regulates all banks and NBFCs across the country. Be it violation of rules or customer interest, strict action has been taken in such cases. In April, RBI has taken strict action against many banks. The license of four has been canceled. After which these banks are not allowed to do business. Transactions have also been banned. However, customers can claim deposit insurance amount of up to Rs 5 lakh from DICGC.

This month RBI has also imposed a fine on 8 banks. All are accused of violating the rules. This list also includes Citibank, Punjab National Bank and Kotak Mahindra Bank. However, this action will not affect the transactions or agreements between the customers and the bank.

License of these banks cancelled

  • The license of Anjana Urban Co-operative Bank Limited, Aurangabad Maharashtra was cancelled on 22 April.
  • The license of Colour Merchants Co-operative Bank Limited, Ahmedabad, Gujarat was cancelled on 16 April.
  • The license of Imperial Urban Co-operative Bank Limited, Jalandhar has also been cancelled. An order was issued to close banking business from 25 April.
  • The license of Shankarrao Mohite Patil Sahakari Bank Limited, Akluj, Maharashtra has also been cancelled. The bank is not allowed to do business from 11 April.

Why was the license cancelled?

The license has been cancelled because these banks do not have sufficient capital and earning prospects. RBI said that the continuation of these banks can prove to be harmful for its customers. Their condition is so bad that they cannot even repay their current depositors.

RBI imposed fine on these banks

Aryavart Bank, Lucknow

Shri Ganesh Sahakari Bank Ltd., Nashik, Maharashtra

Citibank N.A

Punjab National Bank

IDFC First Bank Ltd.

Kotak Mahindra Bank Ltd.

Indian Overseas Bank

Indian Bank

The post RBI action: These 4 banks are closed forever, RBI canceled the license, do you have an account in any of them? first appeared on informalnewz.

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