RBI cancels banking license of Rupee Co-operative Bank

The Reserve Bank of India (RBI) cancelled the license of Rupee Co-operative Bank Ltd in Pune.

According to a press release, 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.

“Consequent to the cancellation of its license, “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 as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with effect from September 22, 2022,” stated the RBI press release.

The RBI has directed the bank to provide every entitled depositor a full amount of their deposits from DICGC. It said, “every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of 5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) on liquidation.”

As on May 18, 2022, DICGC has already paid 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.

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