RBI Withdraws City Co-operative Bank’s Licence

The City Co-operative Bank Ltd.’s licence in Mumbai has been revoke by the Reserve Bank of India (RBI) on the grounds that “the bank does not have adequate capital and earning prospects.”

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Consequently, as of June 19, 2024, at business closure, the bank will no longer be conducting banking operations. The RBI stated that an order for winding up the bank and appointing a liquidator has also requested from the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra.

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Bank’s Financial Position Risks Depositors’ Interests; Deposit Insurance Up to Rs 5 Lakh Guaranteed

The RBI stated that the bank has not complied with the provisions of Sections of the Banking Regulation Act, 1949. “The bank’s continued existence is detrimental to the interests of its depositors. If the bank is permit to continue operating as a bank, its current financial situation will prevent it from paying all of its current depositors, and the public interest will suffer,” the statement stated.

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Subject to the terms of the DICGC Act, 1961, each depositor shall be entitled to collect from Deposit Insurance and Credit Guarantee Corporation (DICGC) the amount of his or her deposits up to a maximum of Rs five lakh upon liquidation.

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