Rupee Bank: Rupee Cooperative Bank to be closed from tomorrow; Action by RBI

Rupee Co-operative Bank:  in Pune Rupee Co-operative Bank (Rupee Co-operative Bank) will have to close from tomorrow. Reserve Bank of India (Reserve Bank Of India) has canceled the banking business license by taking action against the bank. All bank services will be closed from tomorrow, September 22. Therefore, account holders will not be able to do banking transactions. The circular was issued by Reserve Bank of India on August 10. 

Why action against Rupee Bank?

RBI said in its report that Rupee Bank does not have sufficient capital and earning potential. The RBI has also said that the bank has failed to comply with banking regulations and is not adverse to the bank continuing operations for its depositors. RBI has clearly stated in its decision that in view of the current situation, the bank will not be able to return the money to its depositors. 

Deposit Insurance

Each depositor will be entitled to receive the deposit insurance claim amount of his deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a financial limit of five lakh rupees. 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 ordered Rupi Bank to close banking business from 22 September 2022. The RBI said that allowing the banking business to continue is likely to adversely affect the public interest. Commissioner of Cooperatives and Registrar of Cooperative Societies, Maharashtra has also been requested to issue a winding up order and appoint a liquidator for the bank. 

Watch video: Mumbai Rupee Bank : Rupee Cooperative Bank in Pune to close from tomorrow, Rupee Bank’s license revoked

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