RBI Revokes License Of City Co-operative Bank, Orders Immediate Winding Up\r\n

The Reserve Bank of India (RBI) has cancelled the licence of City Co-operative Bank Limited, Mumbai, due to its failure to meet essential financial criteria under the Banking Regulation Act, 1949. The bank was found to be deficient in capital and sustainable earning prospects, posing risks to depositor interests. The RBI instructed the Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, to initiate the winding-up process, including the appointment of a liquidator. \r

The bank is prohibited from conducting banking operations, including accepting and repaying deposits, effective June 19, 2024. The decision was made due to the bank's non-compliance with regulatory provisions, including minimum paid-up capital, cash reserves, liquidity ratios, and investment norms. \r

Deposit Insurance and Credit Guarantee Corporation (DICGC) will provide protection to depositors up to ₹5,00,000 per depositor, with approximately 87% of depositors eligible to receive their full deposits.