RBI cancels the licence of The Durga Co-operative Urban Bank Ltd., Vijayawada

Case Brief

RBI cancelled the licence of The Durga Co-operative Urban Bank Ltd., Vijayawada by order dated November 08, 2024. The bank was found to lack adequate capital and earning prospects and to be non-compliant with provisions of the Banking Regulation Act, including Section 11(1) and Section 22(3)(d) read with Section 56, as well as Section 22(3)(a) to (e) read with Section 56. RBI also said the bank’s continuance would be prejudicial to depositors and public interest. As a consequence, the bank is prohibited from conducting banking business, including accepting and repaying deposits, with immediate effect, and the cooperative registrar has been requested to initiate winding up and appoint a liquidator. DICGC deposit insurance remains available up to the statutory ceiling, subject to applicable provisions.