This bank is closing business permanently from today, know what happens to your money
New Delhi: Rupee Sahakari Bank Limited, headquartered in Pune in Maharashtra will stop doing banking business from today (September 22, 2022).
The closure of Rupee Sahakari Bank Ltd comes six weeks after the Reserve Bank of India canceled its license. on 10 August, RBI had canceled the license of Rupee Co-Operative Bank Ltd. as the lender did not have sufficient capital and earning prospects. However, the RBI said that in compliance with an order of the Bombay High Court, its direction will become effective after six weeks i.e. from August 10.
“Consequently, the bank will cease to do banking business with effect from September 22, 2022,” the RBI had said.
Consequent upon the cancellation of its licence, the ‘Rupee Sahakari Bank Ltd., Pune’ is prohibited from carrying on the banking business including, inter alia, acceptance of deposits and repayment of deposits with effect from September 22, 2022. ,
Rupee Sahakari Bank Ltd. What will happen to the depositor’s money?
As per the data furnished by the co-operative bank, more than 99 per cent of the depositors are entitled to receive the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Upon liquidation, each depositor shall be entitled to receive deposit insurance claim amount up to Rs.5 lakh of his/her deposit from DICGC. As on May 18, 2022, DICGC has already paid Rs 700.44 crore of the total Sum Assured.
The Reserve Bank further said that the Commissioner of Co-operatives and Registrar of Co-operative Societies, Maharashtra have also been requested to issue an order to close the bank and appoint a liquidator for the bank.
Why was the license of Rupee Sahakari Bank Limited canceled?
The license has been canceled as the bank does not have sufficient capital and earning prospects and as such, it does not comply with certain provisions of the Banking Regulation Act, 1949.
“The bank with its present financial position will be unable to make full payments to its existing depositors,” the RBI said, adding that the bank’s continuance is prejudicial to the interests of its depositors.