RBI Cancels Licenses of 11 Banks in 2024: See the Full List & Customer Refund Rules
RBI Cancels Licenses of 11 Banks in 2024: See the Full List & Customer Refund Rules
In 2024, the Reserve Bank of India (RBI) took steps to protect depositors by canceling the licenses of 11 banks. This decision, however, had an impact on customers, who were limited to withdrawing only a certain amount.
The RBI consistently enforces regulations to safeguard customer interests, and this year, it permanently closed these 11 banks, prohibiting them from accepting deposits or conducting transactions.
In an official notice, the RBI stated that allowing these banks to operate would pose a risk to depositors due to their lack of capital and earning potential. This situation led to violations of several provisions of the Banking Act of 1949. Additionally, these banks could not repay their depositors, prompting the RBI to cancel their licenses in the interest of public welfare.
The licenses of the following banks were canceled in the year 2024:
- – Durga Co-operative Urban Bank Limited, Vijayawada, Andhra Pradesh.
- – Shimsha Sahakari Bank Niyamitra, Maddur, Mandya, Karnataka.
- – Shri Mahalakshmi Mercantile Co-operative Bank Limited, Dabhoi, Gujarat.
- – The Hiriyur Urban Co-operative Bank Limited, Hiriyur, Karnataka.
- – Jai Prakash Narayan Nagari Sahakari Bank Limited, Basmathnagar, Maharashtra.
- – Sumerpur Mercantile Urban Co-operative Bank Limited, Sumerpur, Pali, Rajasthan.
- – The Mahabhairab Co-operative Urban Bank Limited, Tezpur, Assam.
- – Purvanchal Co-operative Bank Limited, Ghazipur, UP.
- – The City Co-operative Bank Limited, Mumbai, Maharashtra.
- – Banaras Mercantile Co-operative Bank Limited, Varanasi.
- – Uravakonda Co-operative Town Bank Limited, Andhra Pradesh
Did the customers receive their money? Here are the rules according to the RBI:
Under the DICGC Act of 1961, if a bank’s license is canceled, every customer is entitled to claim deposit insurance for their deposits, up to a limit of Rs 5 lakh from the Deposit Insurance and Guarantee Corporation.
