More than 98% of depositors are eligible to receive the full value of their savings from the Deposit Insurance and Credit Guarantee Corporation, according to information provided by the cooperative bank (DICGC).

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More than 98% of depositors are eligible to receive the full value of their savings from the Deposit Insurance and Credit Guarantee Corporation, according to information provided by the cooperative bank (DICGC).

Digital Desk: From today, Rupee Co-operative Bank Ltd., with its headquarters in Pune, Maharashtra, will no longer conduct banking operations (September 22, 2022).

Six weeks after having its license revoked by the Reserve Bank of India, Rupee Co-operative Bank Ltd. has closed. The Rupee Co-operative Bank Ltd.'s license was revoked by the RBI on August 10 because the firm lacked sufficient capital and growth prospects. But according to the RBI, its directive will take effect six weeks from now, on August 10, in accordance with a High Court of Bombay judgment.

As a result, the bank would stop conducting banking operations as of September 22, 2022, according to RBI.

With effect from September 22, 2022, "Rupee Co-operative Bank Ltd, Pune" will be unable to conduct banking activities, including accepting deposits and repaying deposits, among other things, as a result of the cancellation of its license, the statement said.

What will happen to the funds that depositors have with Rupee Cooperative Bank Limited?

Each depositor would be entitled to receive from the DICGC the deposit insurance claim value of their savings up to Rs. 5 lakh upon liquidation. Of the entire insured deposits, DICGC had already paid out Rs. 700.44 crore as of May 18, 2022.

The Reserve Bank added that the Commissioner for Cooperation and Registrar of Cooperative Societies in Maharashtra had also been asked to issue an order for the bank's closure and appoint a liquidator.

Why was Rupee Co-operative Bank Ltd's license cancelled?

The bank's license has been revoked since it does not meet the requirements of the Banking Regulation Act of 1949 because it lacks sufficient capital and earning potential.

The RBI stated that the bank's continued existence would be detrimental to the interests of its depositors since "the bank with its current financial status would be unable to pay its present depositors in full."