Another bank license has been revoked, the RBI said on consumer deposits

In view of the interest of consumers, the Reserve Bank of India has canceled another bank’s license. The action was taken by the RBI over Goa-based Madgam Urban Co-operative Bank Limited. This is because the bank will not be able to make full payments to its existing depositors with its current financial position.

What is the reason: The central bank has said that the Madgam Urban Co-operative Bank does not have sufficient capital and earning capacity. At the same time, it failed to comply with the various provisions of the Banks Regulation Act, 1949. According to the RBI, the Goa Office of the Registrar of Co-operative Societies has been requested to close the bank and appoint a liquidator for it.

What happens to the depositor’s money? About 99 percent of depositors’ deposits will be obtained from the Insurance and Credit Guarantee Corporation (DICGC), the Reserve Bank said. The bank’s depositors will pay Rs. Are eligible for insurance. If the amount is more than this, the depositor will get only Rs 5 lakh.

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Let me tell you that the government recently approved the payment of insurance to customers within 90 days. After this change, those depositors are compensated, whose money gets stuck in closed or canceled banks for one reason or another.

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