Once the Reserve Bank of India (RBI) has revoked the license of another bank for failing to follow the guidelines, this time, the RBI has revoked the cooperative bank United India Cooperative Bank Ltd's license. This action was made because the bank needs more capital and is anticipated to have lower earning potential.
Will be able to get deposits up to 5 lakhs.
According to a statement by the RBI, the bank would be unable to conduct business as of Wednesday evening because the license was canceled. According to the central bank, every depositor will be eligible to receive their funds under an insurance claim from the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a maximum of Rs 5 lakh. Let us inform you that DICGC insures each account holder's bank deposits up to Rs 5 lakh. The DICGC insurance program covers deposits held by all banks, including commercial banks, local area banks, regional banks, and cooperative banks.
The license of 5 cooperative banks has been canceled so far.
The RBI has terminated five cooperative banks' licenses so far this fiscal year. All five banks' licenses were revoked in July alone. The Shri Sharda Mahila Sahakari Bank in Tumkur, Karnataka, and the Harihareshwar Bank in Satara, Maharashtra, had already come under attack from the central bank on July 11. On the other hand, as of July 5, the banking licenses of the Shushruti Souharda Sahakara Bank Regular in Bengaluru and the Malkapur Urban Cooperative Bank Limited in Buldhana were revoked.