RBI Cancels City Co-operative Bank's Licence Over Inadequate Capital.

Banking & Finance

The Reserve Bank on Wednesday cancelled the licence of The City Co-operative Bank, Maharashtra for lacking adequate capital and earning prospects. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been asked to issue an order for winding up the bank and appoint a liquidator, RBI said. According to RBI, the cooperative bank ceases to carry on banking operations with effect from the close of business hours on June 19, 2024. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh only from Deposit Insurance and Credit Guarantee Corporation (DICGC).


      Giving details, RBI said the Mumbai-based cooperative bank does not have adequate capital and earning prospects.

      Consequent to the cancellation of its licence, The City Co-operative Bank has been prohibited from conducting the business of 'banking' which includes, among other things, acceptance of deposits and repayment of deposits.

     

 

     


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