RBI Cancels Bank Licence: RBI said, "As per the data furnished by the bank, 95.8 per cent of the depositors are entitled to receive the full amount of their deposits from the DICGC."

RBI Cancels Bank Licence: RBI said, "As per the data furnished by the bank, 95.8 per cent of the depositors are entitled to receive the full amount of their deposits from the DICGC."

Durga Co-operative Urban Bank: The Reserve Bank of India (RBI) has cancelled the licence of Vijayawada-based 'The Durga Co-operative Urban Bank'. The RBI has cancelled the license of the bank for not having sufficient capital and earning prospects. The Reserve Bank said that the bank will close the banking business on November 12, 2024. Also, the Cooperative Commissioner of Andhra Pradesh and the Registrar of Cooperative Societies have been requested to issue an order to wind up the bank and appoint a liquidator.

95.8 percent of the depositors will be taken their money

On liquidation, every depositor will be entitled to receive the deposit insurance claim amount from the Deposit Deposit Insurance and Credit Guarantee Corporation (DICGC) on deposits up to a limit of five lakh rupees. "As per the data furnished by the bank, 95.8 per cent of the depositors are entitled to receive the full amount of their deposits from the DICGC," the RBI said.

Regarding cancellation of the license of Durga Cooperative Urban Bank

, RBI said that the bank does not have adequate capital and earning prospects. It has not been able to comply with the rules of the Banking Regulation Act, 1949. It said, "The operation of the bank is not in the interest of its account holders. Due to its current financial position, the bank will be unable to pay its existing depositors in full."

What will be the impact on account holders?

The closure of any bank will affect its account holders, it depends on the amount deposited in their account. On behalf of the Deposit Insurance and Credit Guarantee Corporation (DICGC), money deposited in the account is deposited in the account of those who have deposits up to five lakhs. But those who have more than this amount are bound to suffer. All types of deposit accounts of banks are insured by DICGC.