RBI Cancels Licence of Maharashtra's City Co-operative Bank

The Reserve Bank of India (RBI) has revoked the licence of The City Co-operative Bank in Maharashtra due to inadequate capital and bleak earning prospects. The Commissioner for Cooperation and Registrar of Cooperative Societies has been directed to wind up the bank and appoint a liquidator.

The Reserve Bank of India (RBI) announced on Wednesday the cancellation of The City Co-operative Bank's licence in Maharashtra, citing insufficient capital and poor earnings outlook.

The Commissioner for Cooperation and Registrar of Cooperative Societies in Maharashtra has been instructed to wind up the bank and appoint a liquidator, according to RBI's statement.

Effective from June 19, 2024, the cooperative bank will cease banking operations, and depositors will be eligible to claim up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)