RBI Cancels Licence of Deccan Urban Co-operative Bank
Moneylife Digital Team 19 August 2022
The Reserve Bank of India (RBI) on Thursday said the licence of Deccan Urban Cooperative Bank, Karnataka, has been cancelled as the lender does not have adequate capital and earning prospects. As per the data submitted by the bank, more than 99% of the depositors are entitled to receive the full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC), the banking regulator said in a release. The cooperative bank ceases to carry on banking business, with effect from the close of business on Thursday 18th August. "The bank does not have adequate capital and earning prospects," the RBI said while announcing the cancellation of the licence.
 
It also said the Vijayapur-based bank with its present financial position would be unable to pay its present depositors in full. The RBI has requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Karnataka, to issue an order for winding up the bank and appoint a liquidator for the bank. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to Rs5 lakh DICGC. As of 6 August 2022, DICGC has already paid Rs13.07 crore of the total insured deposits. In another release, the RBI said it has imposed a penalty of Rs5,93,000 on Obopay Mobile Technology India Private Limited for non-compliance with certain provisions of norms on Prepaid Payment Instruments (PPIs) and Know Your Customer (KYC)
 
The central bank, however, said that the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers.
 
It may be recalled that in May 2022, the RBI had extended the directions on the bank for a further period of three month s for a further period of three months from 20 May 2022, to 19 August 2022, subject to review.” The bank was first placed under restriction on 18 February 2021, the validity of which was last extended up to 19 May 2022.
 
Comments
Banks Hike Deposit Rates Ahead of Festive Season
IANS 18 August 2022
Most banks are increasing their deposit rates for boosting deposits to support rising credit offtake as liquidity in the banking system has narrowed.
 
The hike in deposit rates is in line with the Reserve Bank of India's...
Forgery Racket Unearthed after HDFC Bank Finds 33 Accounts with 2 Common Pictures
IANS 11 August 2022
The IFSO (Intelligence Fusion and Strategic Operations) unit of Delhi police's special cell has busted a gang of cheats who were engaged in duping the HDFC Bank by opening accounts on the basis of forged documents, and arrested two...
312 Big Wilful Defaulters Owe Rs1.41 Lakh Crore to Public Sector Banks; Here Is the List of Bank Defaulters
Yogesh Sapkale, 10 August 2022
While public sector banks (PSBs) continue to refuse to share names of big defaulters citing 'confidentiality of customer data', information shared by the Reserve Bank of India (RBI), reveals that just 312 big defaulters owe more...
RBI Cancels the Licence of Rupee Co-operative Bank Pune
Moneylife Digital Team 10 August 2022
The Reserve Bank of India (RBI) on Wednesday said it has cancelled the licence of Rupee Co-operative Bank Ltd (RCB), Pune in compliance with the Bombay High Court order dated 12 September 2017. The order shall become effective after...
Free Helpline
Legal Credit
Feedback