RBI has canceled the banking license..!? Depositors status..?

Sowmiya Sriram
RBI has canceled the banking license..!? Depositors status..?

The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india today announced that it has revoked the license of Pune-based Rupee Cooperative bank, ordering it to cease banking operations from september 22, 2022. The RBI said the bank's license was revoked because it did not have "adequate capital and revenue prospects".
A few months ago, Rupee Co-operative bank had planned to merge with Saraswat bank and failed after getting the RBI's in-principle approval, and now the bank's license has been revoked. Rupee Co-operative bank has rejected the Saraswat bank merger after returning deposits of more than 64,000 people totaling ₹700 crores. The main reason for this is the decline in trading profits due to the outflow of Rs 700 crore deposit funds.
In its order, the RBI outlined that against the interest of the depositors and the public of the rupee co-operative bank, the bank in its current financial position cannot repay the depositors in full.
The RBI said that upon the liquidation of Rupee Co-operative bank, the existing depositors will be entitled to get a deposit insurance claim from the Deposit Insurance and Credit Guarantee Corporation.More than 99% of the depositors are entitled to get the full amount of their deposits, the RBI order said. Almost 1% of depositors will lose deposits above ₹5 lakh.
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