The Reserve Bank of India (RBI) has cancelled the licence of Rupee Cooperative Bank Ltd., Pune, citing inadequate capital and earning prospects and failure to comply with various requirements of the Banking Regulation Act, 1949.
The order will be effective after six weeks from Wednesday. “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,” the RBI said in a circular.
Stating that the continuance of the bank was prejudicial to the interests of depositors, the RBI said, “the bank, with its present financial position, would be unable to pay its present depositors in full; and 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 Cooperative Bank Ltd., Pune. stands prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits…”
“On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000 from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961,“ the RBI said.
“As per the data submitted by the bank, more than 99% of the depositors are entitled to receive full amount of their deposits from DICGC,” it added.
