RBI cancels Deccan Urban Co-operative Bank's licence, know why
The Reserve Bank of India on Thursday said the licence of Deccan Urban Co-operative Bank, Karnataka, has been cancelled as the lender does not have adequate capital and earning prospects.
The Reserve Bank of India on Thursday said the licence of Deccan Urban Co-operative Bank, Karnataka, has been cancelled as the lender does not have adequate capital and earning prospects.As per the data submitted by the bank, more than 99 per cent of the depositors are entitled to receive the full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC), the central bank said in a release.The cooperative bank ceases to carry on banking business, with effect from the close of business on Thursday."The bank does not have adequate capital and earning prospects," the RBI said while announcing the cancellation of the licence.It also said the Vijayapur-based bank with its present financial position would be unable to pay its present depositors in full.
(Source:PTI)