Recently, Reserve Bank India aka RBI cancels the licence of a prominent bank. The bank is a pune based renowned bank. The name of the bank is Rupee Co-operative bank Ltd.
RBI cancels licence of the Pune based notable bank. Rupee Co-operative Bank Ltd, Pune stands prohibited from conducting the business of banking. The prohibition includes, among other things, acceptance of deposits. . The prohibition also includes, includes re-payment of deposits with effect from September 22, 2022.
Why does RBI cancels licence of this famous bank?
RBI cancels licence of this well known bank. As per sources, the bank does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949. RBI cancels the licence of this bank because it doesn’t have adequate capital and earning prospects. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.
The bank is not in the financial position that it could pay it’s depositors in full. The Pune based bank, Rupee Co-operative Bank Ltd could not 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 continuance of the bank is prejudicial to the interests of its depositors. So, RBI cancels licence of this bank.
Every entitled depositor of the bank will get a full amount of their deposits from Deposit Insurance and Credit Guarantee as per RBI’s instructions. Keep visiting our website to know more.
Written by Tritiyaa.