Home News Business License of these 8 banks canceled in FY2023, 114 fined, know why RBI took action

License of these 8 banks canceled in FY2023, 114 fined, know why RBI took action

License of these 8 banks canceled in FY2023, 114 fined, know why RBI took action

RBI News Update: The Reserve Bank of India took strict action on many co-operative banks during the financial year 2023. Apart from canceling the license of 8 banks during the financial year 2023, the Reserve Bank also imposed heavy fines on 114 banks. Co-operative banks have played a major role in providing bank facilities to rural and urban areas of the country. However, at present these banks are facing financial problems. Apart from this, there are many other problems associated with these banks. At the same time, RBI is taking action against banks that do not follow the rules. 

Which eight banks took action 

The Reserve Bank has The eight banks on which action has been taken in 2023 include Mudhol Cooperative Bank, Mithal Cooperative Bank, Shri Anand Cooperative Bank, Rupee Cooperative Bank, Deccan Cooperative Bank, Lakshmi Cooperative Bank, Seva Vikas Cooperative Bank and Babaji Date Mahila Urban Bank.&nbsp ;

Why the license of these banks was cancelled 

The lack of sufficient capital behind the cancellation of the license of these banks, under the Regulatory Act This decision has been taken due to failure to comply with legal norms and lack of earning potential in future. Earlier, RBI had canceled the license of 12 banks in the financial year 2022. At the same time, during 2021, three banks and two cooperative banks were ordered to stop business during the year 2020. 

How much fine was imposed on 114 banks 

Before canceling the license of any bank, RBI warns the bank by imposing fine several times. However, if the rules are not followed by the bank again or the earning potential does not increase, then its license is suspended. RBI has imposed fine ranging from 50 thousand to 5 lakh each on 114 banks. 

What happens to customers’ money? 

If the bank is fined then it does not affect the money of the customers. They are allowed to withdraw their capital deposited in the bank. The amount of this fine has to be paid to the bank itself. On the other hand, in case of cancellation of the license, the bank’s customers can withdraw the deposited capital of 5 lakh through insurance. 

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