RBI cancels licence of Pune-based Rupee Co-operative Bank
- The Reserve Bank of India (RBI) has cancelled the banking licence of Pune-based Rupee Co-operative Bank on August 11, 2022, following an order from the Bombay High Court.
- The order shall come into effect after six weeks from August 11, 2022.
- This means that the bank will have to cease to carry on banking business with effect from September 22, 2022.
- RBI cancelled the licence of Rupee Co-operative Bank due to following reasons:
- the lender does not have adequate capital and earning prospects,
- it failed to comply with banking regulations,
- the continuance of the bank is prejudicial to the interests of its depositors as it is not in a position to pay them
- public interest will be adversely affected if the bank is allowed to carry on its business any further.
Points to Remember:
- Rupee Co-operative Bank headquarter
- Rupee Co-operative Bank will cease to exist from which date? 22 Sept
Source: Financial Express