The Reserve Bank of India (RBI) has cancelled the banking licence of Tamil Nadu-based Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank and has allowed it to function as a non-banking institution.
In a press release, the RBI stated: “The Reserve Bank of India is satisfied to notify Tamil Nadu that the Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd., Cuddalore – 607001, Tamil Nadu, is now classified as a non-banking institution under Section 36A(2), read with Section 56 of the Banking Regulation Act, 1949.
Consequently, the RBI has cancelled the licence dated March 21, 2000, granted to the Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd., Cuddalore – 607001, Tamil Nadu, to carry on banking business in India under Section 22, read with Section 56 of the Banking Regulation Act, 1949, with effect from the close of business on February 6, 2025.”
With this cancellation, the Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd. is now required to cease all banking activities, as defined under Section 5(b), read with Section 56 of the Act, including the acceptance of deposits from non-members, with immediate effect.
Additionally, the bank must ensure the repayment of unpaid and unclaimed deposits of non-members upon demand, even after being classified as a non-banking institution.
The bank serves the employees of Cuddalore and Villupuram District Central Cooperative Banks (DCCBs) and was established around 1937.
