RBI Revokes Ajantha Urban Co-operative Bank’s Licence Over Capital and Compliance Shortfalls.
Goverment Scheme
In April 2025, the Reserve Bank of India (RBI) cancelled the banking licence of Ajantha Urban Co-operative Bank Maryadit, headquartered in Aurangabad, Maharashtra. The action was taken under the provisions of the Banking Regulation Act, 1949, due to the bank’s inadequate capital position, poor earning prospects, and continued non-compliance with regulatory requirements.
- The bank failed to meet the requirements under Sections 11(1), 22(3)(a) to 22(3)(e), and Section 56 of the Banking Regulation Act, 1949.
- It lacked adequate capital and did not demonstrate any viable earning potential.
- The RBI found that allowing the bank to continue operations would be against public interest, particularly affecting depositors, as the bank was unable to meet its deposit repayment obligations.
Main Point :- (i) Following the bank's liquidation, depositors are eligible to receive insurance coverage of up to ₹5 lakh under the provisions of the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961. The DICGC, headquartered in Mumbai, ensures protection of depositors' funds in such cases of bank failure.
(ii) As of April 3, 2025, approximately 91.55% of the depositors qualified to receive the full insured amount of their deposits. In total, the DICGC had disbursed ₹275.22 crore to eligible depositors of Ajantha Urban Co-operative Bank Maryadit.
(iii) As of March 31, 2025, a total of 23 Urban Co-operative Banks (UCBs) were operating under All-Inclusive Directions (AID), with the highest number in Maharashtra (9), followed by Karnataka (5), and Uttar Pradesh (4).
About RBI
Governor : Sanjay Malhotra
Headquarter : Mumbai
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