The Reserve Bank of India (RBI) has cancelled the licence of Mumbai-based The Kapol Co-operative Bank Ltd.

Many decisions have been taken by the Reserve Bank of India from time to time regarding banks. The Reserve Bank of India (RBI) has cancelled the licence of Mumbai-based The Kapol Co-operative Bank Ltd. Customers who have an account in this bank may have trouble. The central bank has said that the bank does not have enough capital and there are no earning possibilities, due to which the RBI has taken this decision. After this decision, deposits of more than Rs 42 crore of about 000,150 account holders are stuck. Account holders are in shock, the future of the staff working for years is also in doubt.

With the cancellation of the licence, the cooperative bank has been immediately banned from banking business, including accepting deposits and returning deposits, the RBI said in a statement.

The
Reserve Bank said that every depositor will be entitled to a deposit insurance claim amount of up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). In this way, about 5.96 percent of the depositors of the bank will be entitled to get their full deposits from DICGC.

What do account holders say?
After this move of RBI, the difficulties of many account holders have increased. Rajesh Patel, a 52-year-old businessman who has been running a hardware store in Mumbai for 70 years, is upset. "Somehow Rs 5 lakh came out, but around Rs 4 lakh is still stuck in 'The Kapol Co-operative Bank'," he told NDTV.

Rajesh Patel says, "I opened the account 20 years ago. I was confident. I don't know what to do now. There is little hope of getting the money."

54-year-old Manish Shah, who runs a tour travel company, also has an FD of Rs <> lakh stuck in 'The Kapol Co-operative Bank'. "The bank is saying the money will come. Hopefully a little bit. By the way, I had already closed my savings account. Only this FD is left. I have also withdrawn FDs from other banks. There is absolutely no confidence left."

According to the bank, there are 41000,36 depositors with deposits of less than Rs 1622 lakh, in which about Rs 131 crore has to be paid. At the same time, there are about 240 depositors with deposits above five lakh, whose about Rs <> crore is stuck. According to the data, so far Rs <> crore has been sent from DICGC to the depositors of Kapol Co-operative Bank.

The
bank's concern is that this amount will have to be refunded to DICGC, that is, the money received from the recovery will have to be given to DICGC instead of depositors. In such a situation, the bank is now hoping for some changes in these rules.

The
central bank said that the Color Merchants Cooperative Bank can neither lend nor renew old loans without its prior permission. Rbi has said that a depositor will not be allowed to withdraw more than Rs 50,000 from his total deposits within the bank.

What does the bank's CEO say?
Brigina R Coutinho, CEO of The Cupol Co-operative Bank, told NDTV, "If DICGC is insured, why take a refund. Then how will we give money to the account holder? It will go to the refund, right? Therefore, there should be some changes in this rule. We are going to meet the RBI with this appeal. I have 35 years of banking experience. In such a situation, depositors are sold in a big way."

What do financial experts say?
Pankaj Mathpal, a financial expert and CEO of Optima Money Managers, says, "While DICGC will fetch up to Rs 5 lakh, it is difficult to get money from those above that."

The community-run Kapol Sahakari Bank was established in 1939. It currently has 15 branches, of which 14 are in Mumbai and one in Surat. On March 30, 2017, the RBI had banned any kind of deposits and credit of the bank due to deteriorating financial condition. The bank says that since 2014, about 500 crores have been recovered, but about 100 crores of NPA burden remains. In such a situation, the question is that even if the recovered amount comes, it will go to DICGC, then what will happen to the depositors?