आरबीआई ने सिटी को-ऑपरेटिव बैंक का लाइसेंस रद्द किया।

आरबीआई ने सिटी को-ऑपरेटिव बैंक का लाइसेंस रद्द किया।

RBI cancels licence of City Co-operative Bank.

The Reserve Bank of India (RBI) has revoked the license of The City Co-operative Bank Ltd, Mumbai, due to inadequate capital and poor earning prospects.

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  • 20, Jun, 2024
Jyoti Ahlawat
Jyoti Ahlawat
  • @JyotiAhlawat

RBI cancels licence of City Co-operative Bank.

The Reserve Bank of India (RBI) has revoked the license of The City Co-operative Bank Ltd, Mumbai, citing insufficient capital and poor earning prospects.

"As a result, the bank is no longer permitted to conduct banking activities as of the close of business on June 19, 2024. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has been asked to issue an order for the bank's liquidation and to appoint a liquidator," stated the RBI.

The bank has not met the requirements of certain sections of the Banking Regulation Act, 1949, according to the RBI. "The continued operation of the bank is detrimental to the interests of its depositors. Given its current financial state, the bank is unable to fully repay its depositors, and allowing it to continue its banking operations would negatively impact public interest," the RBI noted.

Upon liquidation, each depositor will be entitled to receive insurance claims for their deposits up to a limit of Rs five lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), subject to the DICGC Act, 1961. According to the bank's data, approximately 87% of depositors are eligible to receive the full amount of their deposits from DICGC, the RBI reported. As of June 14, 2024, DICGC has already disbursed Rs 230.99 crore of the total insured deposits under Section 18A of the DICGC Act, 1961, based on the consent received from the bank’s depositors.

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Jyoti Ahlawat

Jyoti Ahlawat

  • @JyotiAhlawat