Rupee Bank: High Court’s relief to Rupee Bank, Bombay High Court stays order to revoke license till October 17

Rupee Co-operative Bank : Rupee Bank.  Bombay High Court has adjourned till October 17 the directive of the Reserve Bank of India to cancel the license of the banking business by taking action against the bank.  The bank has appealed to the Union Finance Ministry against the RBI’s decision.  which is expected to be heard on October 17. Taking note of this, the High Court has stayed the RBI order till October 17.

The six-week deadline given by the RBI to comply with the decision issued on August 8 has just expired.  However, due to this stay of the High Court, the bank and the account holders have got relief for now. On the petition filed on behalf of the bank on Thursday, Justice S.K. A hearing has been held before Shinde. 

RBI had said in its report that Rupee Bank does not have sufficient capital and earning potential. The bank failed to comply with banking regulations. The RBI had ordered the cancellation of the license of the loss-making Rupi Bank due to financial irregularities. But the important decision of the Bombay High Court has given the bank a big relief.  

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