Bank license canceled: RBI canceled the license of this bank, know the rules for deposit and withdrawal

Another bank’s license has been cancelled. Banking business has been banned from 22 April. Let’s find out what impact this action of RBI will have on customers?

Bank license canceled: The Reserve Bank of India (RBI) has cancelled the license of Ajanta Urban Co-operative Bank Limited, located in Aurangabad, Maharashtra. This bank will be closed from 22nd April. With this, RBI has issued orders to stop banking business to three banks so far in April. The central bank has given information about this action on Tuesday. Along with this, the Registrar of Co-operative Societies Maharashtra has been requested to issue orders related to the closure of the bank and appointment of a liquidator.

This step has been taken due to violation of various provisions of the Banking Regulation Act 1949. RBI said, “If banks are allowed to continue banking business, public interest will be adversely affected.”

Why did RBI take this step?

Ajanta Urban Co-operative Bank Limited does not have adequate capital and no earning prospects. It is also not in compliance with the requirements of Section 56 along with 22(3)(b), 22(3)(d) and 22(3)(e) of the Banking Regulation Act 1949. If it is allowed to continue, it may prove detrimental to the interests of depositors. With its current state, the bank cannot even repay the depositors.

Customers will also be affected

After the license is canceled, the bank will not be allowed to accept deposits. Nor can it repay the deposits. Apart from this, loans and other banking operations will also not be allowed. However, customers will also get protection under the provisions of the DICGC Act 1961. They will be entitled to receive the deposit insurance claim amount of their deposits up to a monetary limit of Rs 5 lakh from the Insurance and Credit Guarantee Corporation.

More than 91% of the customers will get the full money

According to the data presented by the bank, till April 3, 2025, DICGC has paid Rs 275.22 crore out of the total insured amounts to the depositors associated with the bank. At the same time, 91.55% of the depositors are entitled to receive the full amount of their deposits.

The post Bank license canceled: RBI canceled the license of this bank, know the rules for deposit and withdrawal first appeared on informalnewz.

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