Co-operative Bank Ltd: a bank with a history of 110 years has closed
Co-operative Bank: Cooperative banking services in Pune, which have been providing services for over a hundred years, stopped today. With this, the concern for bank depositors and time deposits began. The Reserve Bank of India (RBI) has already announced that it will cancel the license of Rupee Co-operative Bank Ltd for willful breach of regulations. At the time, RBI said that the bank will be closed from September 22 and services will stop. As mentioned, the Rupee Cooperative Bank, which has a 110-year history, closed on Thursday. Due to the cancellation of the license, the collection of deposits and the payment of deposits were stopped.
Why was the license revoked?
Reasons such as failure to comply with the Banking Regulation Act 1949, insufficient capital and lack of income opportunities led to the cancellation of Rupee Co-operative Bank Ltd’s license. The Bank violated Section 11 (1) and Section 22 (3 ) (d) of article 56 of the Banking Regulation Law. Additionally, the Reserve Bank stated that it did not comply with Sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3) ( me). Stating that the bank does not have the financial capacity to pay current depositors in full, the RBI said that continuing the bank would harm the interests of its depositors.
And the depositors?
According to the data presented by the Cooperative Bank, more than 99 percent of depositors are eligible to receive the full amount of their deposits from the Credit and Insurance Guarantee Corporation (DICGC). DIGCC has returned Rs.700.44 crore of total insured deposits till May 18, 2022. Also, on settlement, each depositor will receive from DIGCC Rs. Eligible to receive deposit insurance claim amount up to 5 lakhs.
