RBI cancels the license of The City Co-operative Bank Ltd Mumbai, Maharashtra

by Psu Connect
Date: 20-06-24

As per the data submitted by the bank, about 87% of the depositors are entitled to receive the full amount of their deposits from DICGC.

RBI cancels the license of The City Co-operative Bank Ltd Mumbai, Maharashtra

The Reserve Bank of India has canceled the license of “The City Co-operative Bank Ltd., Mumbai, Maharashtra. Consequently, the bank ceases to carry on banking business, from the close of business on June 19, 2024.

The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, the bank said in a press release.

Consequently, the bank is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5 (b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect.

On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961, the bank stated.

As per the data submitted by the bank, about 87% of the depositors are entitled to receive the full amount of their deposits from DICGC. As of June 14, 2024, DICGC has already paid ?230.99 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961 based on the willingness received from the concerned depositors of the bank, it added further.