Mumbai, August 10

The Reserve Bank of India has cancelled the licence of Pune-based Rupee Co-operative Bank.

The central bank, in a statement, said the bank’s licence has been cancelled as it does not have adequate capital and earning prospects and its continuance is prejudicial to the interests of its depositors.

“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,” per the statement.

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The central bank said in compliance to the 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.

The central bank 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.

Monetary ceiling

On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5 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 per cent 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,” according to the statement.

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