RBI Cancels Licence of Durga Bank: Key Details Revealed

The Reserve Bank of India has cancelled the licence of The Durga Co-operative Urban Bank in Vijayawada due to insufficient capital and poor earning prospects. As of November 12, 2024, the bank will cease operations, with a liquidator appointed for winding up. Depositors are eligible for insurance claims up to Rs 5 lakh.

The Reserve Bank of India (RBI) announced on Tuesday that it has revoked the licence of The Durga Co-operative Urban Bank, located in Vijayawada. This decision comes as a result of the bank's inadequate capital reserves and bleak earning prospects.

Effective from the close of business on November 12, 2024, the bank is prohibited from conducting any banking activities. The Commissioner for Cooperation and Registrar of Cooperative Societies in Andhra Pradesh have been asked to order the bank's liquidation and appoint a liquidator for winding up its operations.

Depositors can claim insurance amounts up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). Based on bank data, 95.8% of depositors will receive their full deposit amounts. Meanwhile, DICGC has already disbursed Rs 9.84 crore against insured deposits.

(With inputs from agencies.)