In a notification issued on the 10th of last month, RBI stated that the license of Pune-based Rupee Cooperative Bank Limited (Rupee Cooperative Bank) is being cancelled. RBI said that this bank will be closed within six weeks from August 10. That means the bank license will expire on September 22, 2022. After that, customers of this bank will not be able to withdraw money from their savings account. Even if there is a fixed deposit.. it has to be withdrawn immediately. Otherwise the customers will have to face a huge loss.
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The amount deposited in this bank is insured up to Rs.5 lakh from Deposit Insurance and Credit Guarantee Corporation Insurance Scheme. DICGG is a subsidiary of Reserve Bank. It provides insurance for bank deposits.
RBI has closed many banks earlier too. As their financial condition is not good, they are closed. Their license was also cancelled. Rupi Cooperative Bank is also closing for the same reason. The financial condition of this bank is not good. Also it does not meet the RBI norms. Banks are penalized when they do not comply with RBI norms. If they repeatedly violate the rules.. their license will be revoked. Currently this Pune-based Rupee Cooperative Bank has also joined this list. RBI has canceled the license of this bank due to violation of RBI rules and not listening to warnings issued several times. This bank is going to be closed next week.
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