If you also have an account in a co-operative or small bank, then this news is very important for you. RBI i.e. Reserve Bank of India has cancelled the license of another bank. Why did this happen, what will be its effect on the customers, and what should you do now. Let’s understand everything in simple language.
Why was the bank’s license cancelled
Whenever RBI cancels the license of a bank, there are many reasons behind it. Like the condition of the bank becomes very bad, it fails to return the money of its customers or does not follow the rules of RBI. Something similar has happened this time too.
Cancellation of license means that now that bank cannot take deposits from people, nor can it give loan to anyone. That is, the functioning of the bank is completely stopped.
Will the customers’ money be lost?
Now the biggest question is that the people who have deposited money in this bank, have their money lost? No, if the bank comes under the DICGC scheme, then customers get insurance of up to ₹ 5 lakh. That is, if you have deposited ₹ 5 lakh or less in that bank, then you will get that money. However, for this you will have to complete a little process and it may also take some time.
What should customers do
First of all, check the official website of the bank or the notification of RBI whether your name is also among the account holders of that bank or not.
If yes, then you will have to fill the application for DICGC claim. Contact the bank or its branch.
Keep the necessary documents like passbook, ID proof, Aadhar card etc. ready.
If the bank has started the process of refunding your money, then you may also get an SMS, email or call from the branch.
Avoid opening an account in such a bank
Now the lesson learned from this news is that do not open an account in any unknown, small or co-operative bank without proper investigation. Always check whether the bank is registered with RBI or not and what is its financial condition. If you want more safety then choose a government bank or a big private bank.
Conclusion
RBI has once again taken a big action against a weak bank and has cancelled its license. If you have an account in that bank then there is no need to panic, you can get back up to ₹ 5 lakh through DICGC. Just claim on time and keep the necessary documents ready.