Customers will not be able to withdraw money from their own account, RBI canceled this bank’s license-
reserve Bank of India (RBI) has canceled the license of another bank. Taking a major action, the RBI has canceled the license of Karwar Urban Co-operative Bank in Karnataka. Karwar Urban Co-operative Bank does not have enough capital to run a bank nor is there any possibility of earning for the bank. In view of the current conditions of the bank, the RBI canceled its license. After this decision of RBI, Karwar Urban Co-operative Bank will stop all types of banking activities from July 23, 2025. This directly means that the customers of Karwar Urban Co-operative Bank will neither be able to deposit money nor withdraw in their account immediately.
Customers will be entitled to get up to Rs 5 lakh through DICGC
The RBI said in a statement on Wednesday that the ‘Registrar of Cooperative Societies, Karnataka’ has also been requested to close the bank and issue an order to appoint a liquidator for the bank. On liquidation, each depositor will be entitled to receive the insurance claim amount deposited on its deposit up to Rs 5 lakh from the ‘Deposit Insurance and Loan Guarantee Corporation’ (DICGC). RBI said that according to data presented by the bank, 92.9 percent deposits are entitled to receive the full amount of their deposits from DICGC. That is, Karwar Urban Co-operative Bank has less than Rs 5 lakh in the account of 92.9 percent customers and under DICGC, they will get all the money deposited in the account.
Even before this, RBI has canceled the licenses of many banks
DICGC has paid Rs 37.79 crore out of the total insured deposits by June 30, 2025. The RBI said that the cooperative society does not have enough capital and earning possibilities. Let us tell you that RBI had earlier taken action against many banks and canceled their licenses. RBI earlier includes HCBL Co-operative Bank of Lucknow, Color Merchants Co-operative Bank of Ahmedabad, Ajanta Urban Co-operative Bank of Aurangabad, Imperial Urban Co-operative Bank of Jalandhar etc.
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