: RBI cancels licence of Rupee Co-operative Bank #finance #StockMarketNEWS #Business Mumbai: The Reserve Bank of India on Wednesday said it has cancelled the licence of Pune-based Rupee Co-operative

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RBI cancels licence of Rupee Co-operative Bank #finance #StockMarketNEWS #Business
Mumbai: The Reserve Bank of India on Wednesday said it has cancelled the licence of Pune-based Rupee Co-operative Bank Ltd as the lender does not have adequate capital and earning prospects.

However, the RBI said that in compliance to an order of the High Court of Bombay, its direction will become effective after six weeks from Wednesday.

“Consequently, the bank will cease to carry on banking business, with effect from September 22, 2022,�? it said.

As per the data submitted by the cooperative bank, more than 99 per cent of the depositors are entitled to receive full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC).

As of May 18, 2022, DICGC has already paid ` 700.44 crore of the total insured deposits.

The Reserve Bank further said 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 license has been cancelled because the bank does not have adequate capital and earning prospects and as such, it does not comply with certain provisions of the Banking Regulation Act, 1949.

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, it said.

On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to ` 5 lakh from DICGC.