Rupee Bank: RBI cancels the license of Rupee Bank in Pune, blaming it for non-compliance of banking norms

Pune: There is an important news for bank account holders Reserve Bank of India has canceled the license of Rupee Cooperative Bank in Pune. The RBI has blamed Rupi Bank for its failure to comply with banking regulations and has ordered Rupi Bank to cease banking operations from September 22, 2022. RBI has taken this action after the Bombay High Court’s order. 

RBI has said in its circular that Rupee Bank does not have sufficient capital and earning potential. RBI has also said that the bank has failed to comply with the banking regulations and the bank is not adverse to continue the business for its depositors. In view of the current situation, RBI has said that the bank will not be able to return the money to its depositors. 

RBI has ordered Rupi Bank to stop banking business from September 22, 2022 and if the banking business is allowed to continue, it will adversely affect the public interest. It is said that it is likely to happen. The Commissioner of Co-operatives and Registrar of Co-operative Societies, Maharashtra has also been requested to issue a winding-up order and appoint a liquidator for the bank. Each depositor shall be entitled to receive deposit insurance claim amount of his deposits up to the limit. According to the data presented by the bank, more than 99 percent of the depositors are entitled to get the full amount of their deposits from DICGC. As of 18 May 2022, DICGC has already paid Rs 700 crore of the total insured deposits of the bank’s respective depositors as per the provisions. RBI is now following a tough policy on cooperative banks and the crackdown on Rupi Bank is said to be a part of it. 

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