The Reserve Bank of India (RBI) has taken strict action against many banks in June. Fine has been imposed on 19 banks, which also includes Canara Bank. A ban has also been imposed on one bank, which will remain in effect for 6 months. RBI has also canceled the license of one bank. It has been prevented from continuing its business. Central Bank has given information about the action on its official website. But it is given.

RBI has canceled the license of Shree Mahalaxmi Urban Co-operative Credit Bank Limited. Banking business has been ordered to be closed from June 18. The license of this bank has been canceled due to lack of sufficient capital and earning potential. Its finances were so bad that it could not even pay the full amount to all its depositors.

Ban imposed on these banks

Mogavir Co-operative Bank Limited (Bombay) has been ordered by RBI to close banking business from June 12, which will be effective for 6 months. This step has been taken in view of the liquidity position of the bank. It will be reviewed after 6 months. The Central Bank has clarified that the license of the bank has not been cancelled. Customers have been allowed to withdraw cash up to Rs 1 lakh from the account.

What will happen to customers’ money?

Cancellation of bank license or ban will also affect the customers. However, security will also be ensured for the account holders. Every depositor will be entitled to receive deposit insurance claim amount up to Rs 5 lakh from DICGC on his deposits.

fine on these banks

1. Canara Bank
2. Wardha District Ashirwad Mahila Nagari Cooperative Bank Maryadit located at Hinganghat, Maharashtra.
3. The Nashik Road Devlali Merchant Cooperative Bank Limited
4. Navapur Mercantile Co-operative Bank Limited located in Nandurbar, Maharashtra
5. Sarvodaya Commercial Co-operative Bank Limited, Gujarat
6. Chitradurga District Cooperative Central Bank Limited, Karnataka
7. Nabapally Co-operative Bank Limited, West Bengal
8. The Modern Co-operative Urban Bank Limited, Chalisgaon, Maharashtra
9. The Lalgudi Co-operative Urban Bank Limited, Tamil Nadu
10. Hutatma Cooperative Bank Limited, Maharashtra
11. Shimoga District Co-operative Central Bank Limited, Karnataka
12. Sultanpur District Cooperative Bank Limited, UP
13. Chittoor District Co-operative Central Bank Limited, Andhra Pradesh
14. Shri Bharti Co-operative Urban Bank Limited, Hyderabad
15. The Chikmagalur District Co-operative Central Bank Limited, Karnataka
16. The Citizens Urban Co-operative Bank Limited, Jalandhar, Punjab
17. Mahila Co-operative Bank Limited, Bengaluru
18. Amravati Merchants Cooperative Bank Limited, Maharashtra
19. The Karnal Central Co-operative Bank Limited, Haryana

See RBI notification here