RBI cancels license of this bank! People rushed to withdraw money!

RBI supervises all the banks in the country. Few days back, Reserve Bank of India or RBI cancels license of a bank. It is a giant step for RBI. Reserve Bank of India is cancelling bank license one by one for not complying with the rules. The reason given is that all those banks have no way of making enough money.

Reserve Bank of India (RBI) takes strict action on any bank that violates the regulations given it. Earlier, RBI has banned the license of a large number of banks. However, if the license of the bank was revoked, all the customers who used to transact in those banks faced a lot of problems.

Customers are in trouble as RBI cancels license.

This time, RBI cancels license of Maharashtra based respective bank, Lakshmi Cooperative Bank. The transactions of the customers of Lakshmi Cooperative Bank have been stopped.

However, as per rules, all customers will be refunded their deposits up to Rs 5 lakh by RBI. But if a customer of Lakshmi Cooperative Bank has more than 5 lakh rupees in deposit; then she/he will not get more than 5 lakh rupees.

RBI changes ATM withdrawal Rules for 2022, Know before withdraw

The RBI cancels license and stated that the Lakshmi Cooperative Bank with its present financial position would not be able to pay its present depositors in full and public interest would be adversely affected. It also cited the bank failed to comply with the requirements of Sections 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949.
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Written and edited by Rajeshwari.

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