RBI Cancels the Licence of City Cooperative Bank from Mumbai
Moneylife Digital Team 19 June 2024
The Reserve Bank of India (RBI) has cancelled the certificate of registration (CoR) of Mumbai- Maharashtra based City Cooperative Bank Ltd due to inadequate capital and poor earning prospects of the lender. RBI has asked the Bank to stop banking business from 19 June 2024.
 
RBI says City Cooperative Bank does not have adequate capital and earning prospects and has failed to comply with the requirements of the banking regulation act.
 
“The continuance of the Bank is prejudicial to the interests of its depositors. With its present financial position would be unable to pay its present depositors in full. The public interest would be adversely affected if the bank is allowed to carry on its banking business any further,” RBI says
 
Consequent to the cancellation of its licence, City Cooperative Bank is prohibited from conducting business, including accepting fresh deposits and repaying deposits.
 
According to the central bank, on liquidation, every depositor is entitled to receive a deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).
 
As per the data submitted by City Cooperative Bank, 87% of the depositors are entitled to receive the full amount of their deposits from DICGC. As of 14 June 2024, DICGC has already paid Rs230.99 crore of the total insured deposits based on the willingness received from the concerned depositors of the Maharashtra -based Bank.
Comments
As RBI Weighs Tata Sons' Plea To Stay Private, Public Interest Favours Listing
Sucheta Dalal, 21 June 2024
After the one-day slump caused by poll results, India’s stock markets have rebounded and, thankfully, remained steady—albeit on a very high plateau. This means that around Rs20,000 crore per month will continue to flow into mutual...
Competition Commission Approves Split in Godrej Empire
Moneylife Digital Team 19 June 2024
The competition commission of India (CCI) has approved the proposed combination involving the realignment of interests, legal ownership, and management of various entities within the 127-year-old Godrej group.
 
The proposed...
RBI Regulatory Sandbox's 4th Cohort on Financial Fraud Prevention Completes Testing Phase
Moneylife Digital Team 19 June 2024
To enhance financial security, Reserve Bank of India (RBI) has successfully completed the testing phase of the fourth cohort of the regulatory sandbox (RS) focused on the prevention and mitigation of financial frauds. Six entities...
SEBI Imposes Rs35 Lakh Penalty on Hexa Tradex and 9 Others for Failing in Due Diligence for Delisting
Moneylife Digital Team 18 June 2024
Market regulator Securities and Exchange Board of India (SEBI) has penalised OP Jindal group company Hexa Tradex Ltd and its nine associated entities Rs35 lakh for multiple regulatory violations. The order details significant failures...
Array
Free Helpline
Legal Credit
Feedback