RBI banned this bank! Now you will not be able to withdraw money, know what will happen now?

This is not the primary time that RBI has issued such directions on a financial institution. Earlier, RBI had imposed comparable restrictions on withdrawals in PMC Bank and Yes Bank.

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The Reserve Bank of India (RBI) has imposed many restrictions together with withdrawal of cash from a co-operative financial institution, due to which clients related to this financial institution will not be able to withdraw cash for the following 6 months. Apart from this, the financial institution has additionally been refused permission to give mortgage or different quantity. Due to this step of RBI, hundreds of depositors of co-operative banks are nervous as a result of they’re not able to withdraw their deposits from the financial institution.

The Central Bank has imposed this ban on Shirpur Merchants Co-operative Bank of Maharashtra. According to the ET report, this is not the primary time that RBI has issued such directions on a financial institution. Earlier, RBI had imposed comparable restrictions on withdrawals in PMC Bank and Yes Bank. RBI has imposed this restriction protecting in view the monetary situation of the financial institution.

What ought to clients do if a financial institution fails?
What rights do clients have when a financial institution fails or is foreclosed on? What ought to Shirpur Merchants Co-operative Bank clients do now? Let us know. However, earlier than that allow us know what RBI mentioned. According to the central financial institution, the financial institution will not grant or renew any mortgage or advance with out the approval of RBI. Also nobody will make investments.

What rights do clients have?
If a financial institution fails, as per the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, each depositor of a financial institution has a deposit insurance coverage cowl of up to Rs 5 lakh, which covers the principal and curiosity of their accounts with that individual financial institution. Amount is included. The insurance coverage cowl quantity applies to all deposits taken collectively, regardless of the account.

When will you get the cash again?
Under deposit insurance coverage, an quantity up to Rs 5 lakh is launched to clients inside 90 days. RBI mentioned that clients of Shirpur Merchants Co-operative Bank can go to the official web site of the financial institution for extra data.

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