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Bank License Cancelled: Reserve Bank of India is keeping a close watch on banks these days. If RBI investigates a bank and during this time any lapse related to violation of rules is found then fine, cancellation of banking license and even ban is imposed on them. After recently banning Paytm Payments Bank, this time RBI has taken action against Sumerpur Mercantile Urban Co-operative Bank.
License of Sumerpur Mercantile Urban Co-operative Bank canceled
The Reserve Bank on Wednesday canceled the license of Sumerpur Mercantile Urban Cooperative Bank located in Pali, Rajasthan. The reason for this is that this bank does not have sufficient capital and earning capacity.
The Reserve Bank of India (RBI) said in a statement that the Registrar of Co-operative Societies, Rajasthan, has also been requested to issue an order to close the bank and appoint a liquidator. According to this, on liquidation, every depositor will be entitled to receive deposit insurance claim amount of up to Rs 5 lakh of his deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Bank does not have sufficient capital and earning capacity: RBI
The Reserve Bank of India (RBI) said, “As per bank data, 99.13 per cent of depositors are entitled to receive the full amount of their deposits from DICGC. Giving the reason for canceling the license, RBI said that Sumerpur Mercantile Urban Cooperative Bank does not have sufficient capital and earning capacity.
Reserve Bank has banned Paytm Payments Bank
Last month, the Reserve Bank had taken major action against Paytm Payments Bank Limited (RBI Ban On Paytm Payments Bank). RBI issued an order on January 31 banning Paytm Payments Bank Limited from opening any customer account after February 29. Asked to stop further deposits, transactions or top-ups in prepaid devices, wallets, Fastag and National Common Mobility Cards. The central bank has now extended its deadline till March 15.