Medilytix bureau: The Reserve Bank of India (RBI) on Wednesday cancelled the licence of Rupee Co-operative Bank Ltd. in Pune with effect from six weeks from today.
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.
“Rupee Co-operative Bank Ltd, Pune” is now prohibited from conducting the business of “banking,” which includes, among other things, accepting deposits and repaying deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949, with effect from September 22, 2022, according to an RBI press release.
The RBI has directed the bank to provide every entitled depositor with the full amount of their deposits from DICGC. It stated that “on liquidation, every depositor would be entitled to receive a deposit insurance claim amount of his/her deposits up to a monetary ceiling of 5,00,000/- (five lakh only) from the Deposit Insurance and Credit Guarantee Corporation (DICGC”
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.