The Reserve Bank of India has cancelled the license of few banks. The list of those who git there license cancelled includes Bagnan, United Co-operative Bank Ltd, West Bengal.

The Central bank has taken the decision after finding out about unadequate capital and earning prospects of banks, RBI said in an order dated May 10, 2021. Depositors don’t have to worry as they will receive the full amount of their deposits. Thanks to the Deposit Insurance and Credit Guarantee Corporation, however, depositors are entitled to receive claim benefits of up to Rs 5 lakh. RBI said that the bank would not be able to pay its depositors the full amount of their deposits looking at the current situation. The process of liquidation will start and the bank will be prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits.

In a statement, the RBI said that “The Registrar of Cooperative Societies, West Bengal has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank,” RBI said in its official statement published on Thursday, May 13. “Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.”

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