The order will become effective after six weeks, the central bank said. Consequently, the bank will cease to carry on banking business, with effect from September 22, 2022.
The Reserve Bank of India (RBI) has cancelled the licence of Rupee Co-operative Bank Ltd, Pune. The order will become effective after six weeks, the central bank said in an order dated August 8.
Consequently, the bank will cease to carry on banking business, with effect from September 22, 2022. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
RBI cancelled the licence of the bank as:
i) The bank does not have adequate capital and earning prospects.
ii) The bank has failed to comply with the requirements of Sections 22(3)
iii) The continuance of the bank is prejudicial to the interests of its depositors;
iv) The bank with its present financial position would be unable to pay its present depositors in full; and
v) Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.
Consequent to the cancellation of its licence, “Rupee Co-operative Bank Ltd, Pune” stands prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits with effect from September 22, 2022. 3. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5,00,000 from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961, RBI said.
As per the data submitted by the bank, more than 99 percent of the depositors are entitled to receive full amount of their deposits from DICGC.
As on May 18, 2022, DICGC has already paid Rs 700.44 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961 based on the willingness received from the concerned depositors of the bank.
(Edited by : Anshul)
First Published: IST