Another bank in the country will shut down within the next few hours. Customers are advised to take out as much of their deposits as they can. The bank in question is a Pune-based cooperative bank.
The Reserve Bank of India had ordered Pune's Rupee Co-operative shut in August. According to reports, customers were informed in advance that the bank will shut down on September 22. The date for closure is around the corner.
RBI had taken the decision as the bank hadn't been complying with its guidelines.
The bank was in financial dire straits as it neither had the capital to operate smoothly nor had any concrete plan to become profitable. RBI later canceled the license.
Does this mean depositors will lose their money? Well, as per the banking norms, Rs 5 lakh is assured. So those who have deposits up to Rs 5 lakh will get their money back. However, people with more than five lakhs will have to forego the additional amount.
DICGC will pay the insured sum to the bank customers.
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