Cancellation of bank license..!? RBI's sudden order..!

Sowmiya Sriram
Cancellation of bank license..!? RBI's sudden order..!
Most of the banks in india are not following the various regulations of the Reserve bank, and the Reserve bank is constantly monitoring and investigating to correct this. In this situation, many small and cooperative banks are suffering a lot due to the changes in the economy and the business market. RBI has now canceled the license of the famous pune based Seva Vikas Cooperative Bank. In a notification issued today by the Reserve bank of india, the license of Pune-based Seva Vikas Co-operative bank has been revoked. RBI canceled the banking license after serious consultation as the bank did not have sufficient funds to repay the customers and there was no possibility of generating additional income.


With this announcement, the RBI said in a statement that Seva Vikas Co-operative bank should not carry out any banking activities from october 10. Recently, too many cooperative banks have been caught in such trouble and have lost their banking licenses. Due to this, the people's song has turned into a chant.



Based on Seva Vikas Cooperative bank and RBI bank, it has been announced that 99 percent of those who have deposited in this bank will get the money through DICGC insurance protection. Who won't get money..? Under DICGC insurance cover up to 5 lakhs per bank is covered. That is, suppose raja deposits 6 lakh rupees and ravi deposits 4 lakh rupees in a bank. Now, if the bank goes bankrupt or if the RBI cancels the banking license like this then the DICGC protection will be important.



In this case, raja will get only Rs 5 lakh for his Rs 6 lakh, while ravi will get his total sum of Rs 4 lakh as the DICGC insurance covers up to Rs 5 lakh. With this, we all need to know that we should not deposit more than 5 lakh rupees in any bank.
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