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NEW DELHI : The Reserve Bank of India (RBI) Wednesday said it has cancelled the licence of Rupee Co-operative Bank Ltd, Pune in compliance with the Bombay high court order dated September 12, 2017. The order shall become effective after six weeks from today i.e from September 22, 2022.

The central bank said the public interest would have been adversely affected if the Rupee Co-operative Bank Pune was allowed to carry on its banking business any further as the bank with its present financial position would be unable to pay its present depositors in full.

The RBI said the bank will cease to carry on banking business, with effect after six weeks from today. The bank would be prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits, the RBI added.

The banking regulatory body said the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

The Reserve Bank said the banking licence of the Rupee Co-operative Bank was cancelled as the bank does not have adequate capital and earning prospects. It does not comply with the provisions of Section 11(1) and Section 22 (3) (d) with Section 56 of the Banking Regulation Act, 1949.

The bank has failed to comply with the requirements of Sections 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949, the RBI added.

The RBI further said 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, the RBI said. 

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.

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