RBI cancels Rupee Co-operative's licence; lender to cease business Sep 22

More than 99% of depositors of Pune-based lender to receive the full amount, says regulator

The Reserve Bank of India (RBI) on Wednesday cancelled the licence of the Rupee Co-operative Bank, saying the Pune-based lender does not have adequate capital, earning prospects and it does not comply with regulations.

Rupee Co-operative will cease to conduct business from September 22. Maharashtra’s Commissioner for Cooperation and Registrar of Cooperative Societies will issue an order for winding up the bank and appoint a liquidator, the RBI said.

The regulator said that upon liquidation every depositor of Rupee Co-operative would be entitled to an insurance claim of up to Rs 5 lakh in accordance with the provisions of