Mumbai: The Reserve bank of India (RB) has cancelled the license of Pune based Rupee Co-operative Bank Ltd for inadequate capital and failing to comply with regulatory requirements. Consequent to the cancellation of its license the bank will be prohibited to conduct banking activities including acceptance of deposits and repayment of deposits from 22 September 2022.
“Today, the Reserve Bank of India (RBI), vide order dated August 08, 2022, has cancelled the licence of “Rupee Co-operative Bank Ltd, Pune”. In compliance to the Hon’ble High Court of Bombay order dated September 12, 2017 in Writ Petition No. 2938 of 2014 (Bank Employees Union, Pune vs. The State of Maharashtra & Ors.) with Writ Petition No. 9286 of 2017 (Naresh Vasant Raut & Ors. Vs. The State of Maharashtra & Ors), the order shall become effective after six weeks from today. 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 said in a circular.
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/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961. 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. 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.