Rbi cancels license of goa madgaum urban co operative bank
After canceling the license of Madgam Co-operative Bank, RBI has asked the Goa Registrar of Co-operative Societies to appoint a liquidator by issuing orders in the shortest possible time.
New Delhi. The Reserve Bank of India has canceled the license of Goa Madgam Urban Co-operative Bank. After this decision, the Madgam Co-operative Bank has no right to carry on any kind of banking business. RBI has asked the Goa Registrar of Co-operative Societies to appoint a liquidator by issuing orders in the shortest possible time.
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Depositors will not suffer
According to the data submitted by Goa Madgam Urban Co-operative Bank, 99 percent of the depositors will not lose a single rupee. They will get the full amount of the deposit under insurance. Account holders get the benefit of insurance under the DICGC Act, 1961 i.e. Deposit Insurance and Credit Guarantee Co-operation. Regarding cancellation of license, it has been said by RBI that the bank did not have sufficient capital for operation. Apart from this, the future also looks bleak regarding earnings. Also the bank does not follow the norms of rbi.
License of a dozen banks canceled in a few months
For some time now, the target of Reserve Bank of India is all those banks in the country where operations are not being done properly or are not being done. The Reserve Bank of India has canceled the licenses of about a dozen weak cooperative banks in the last few months. Along with this, strict steps have been taken against the bank management.
Modi cabinet took a big decision 1 day ago
Earlier i.e. on Wednesday itself, the Modi cabinet had taken a big decision regarding depositor insurance. The amendment in the Deposit Insurance and Credit Guarantee Corporation ie DICGC Act 1961 was approved in the cabinet meeting. Under this, the depositors will get the money within 90 days in case of the sinking or closure of a bank. This maximum amount will be 5 lakhs which was earlier only 1 lakh rupees.
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