Case Brief
The Reserve Bank of India cancelled the banking licence of Deccan Urban Co-operative Bank Ltd., Vijayapur, Karnataka by order dated August 17, 2022. As a result, the bank ceased to carry on banking business from the close of business on August 18, 2022. RBI said the bank lacked adequate capital and earning prospects, did not comply with key provisions of the Banking Regulation Act, 1949, and that its continuance would prejudice depositors and public interest. RBI also requested the Karnataka Registrar of Cooperative Societies to issue a winding-up order and appoint a liquidator. The release also notes deposit insurance coverage up to ₹5 lakh per depositor, subject to DICGC provisions.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Vijayapur, Karnataka