Today, the Reserve Bank of India (RBI), vide order dated August 17, 2022, has cancelled the licence of “Deccan Urban Co-operative Bank Ltd., Vijayapur, Karnataka”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on August 18, 2022. The Commissioner for Cooperation and Registrar of Cooperative Societies, Karnataka has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
The Reserve Bank cancelled the license of the bank as:
2. Consequent to the cancellation of its licence, “Deccan Urban Co-operative Bank Ltd., Vijayapur, Karnataka” is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect.
3. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961. 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 DICGC. As on August 06, 2022, DICGC has already paid ₹13.07 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961 based on the willingness received from the concerned depositors of the bank.
Press Release: 2022-2023/728