RBI Cancels This Bank's License: What You Need To Know
Image: NDTV
26 July 2025
The Reserve Bank of India (RBI) has canceled the license of Karwar Urban Co-operative Bank in Karnataka
Image: X.Com
As of July 23, 2025, the bank will no longer be allowed to carry out any banking operations
Image: Unsplash
The RBI stated that the bank lacked sufficient capital and had no viable path to profitability
Image: Unsplash
The bank was unable to meet its liabilities, leading to RBI's decision to shut it down
Image: Unsplash
The Karnataka government has been asked to initiate the liquidation process and appoint a liquidator
Image: Unsplash
Depositors do not need to panic, as their money is insured up to Rs 5 lakh under DICGC (Deposit Insurance and Credit Guarantee Corporation)
Image: Unsplash
Each account holder will be eligible to receive up to Rs 5 lakh of their deposited funds even if the bank closes
Image: Unsplash
Customers should contact the bank or DICGC to learn about the claim process and required documentation
Image: Unsplash
Depositors with more than Rs 5 lakh in the bank are not guaranteed to recover the remaining amount
Image: Unsplash
The incident serves as a caution for people investing in small cooperative banks
Image: Unsplash
Check More Stories
Image: Reuters
Image: Unsplash
Image: Unsplash
ndtv.com