Recently the Reserve bank of India (RBI) has cancelled the licence of Shivajirao Bhosale Sahakari Bank, Pune as the lender does not have adequate capital and earning prospects.
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The central bank has taken this decision due to lack of sufficient capital and earning potential with the bank.
Further, the bank said that the bank does not comply with certain provisions of the Banking Regulation Act, 1949.
Customers deposit their money in banks with full confidence, but many times the banks are not able to work according to the rules of Reserve Bank of India (RBI). In such a situation, the central bank takes action on them.
RBI imposes penalty on most banks. But in some circumstances he has to cancel the license in the interest of protecting the customers.
