The Bombay High Court suspended the operation of the Reserve Bank of India order cancelling the banking license of Rupee Co-op Bank Ltd, which was to come into effect from September 20, reports Indian Express.
The Pune-based Rupee Co-operative Bank Ltd was not to carry on banking business, from September 22, 2022, a month and a half after RBI cancelled its licence. On August 10, the RBI had cancelled the licence as the lender did not have adequate capital and earning prospects.
According to the data submitted by the cooperative bank, over 99 per cent of the depositors should receive the full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC). As of May 18, 2022, DICGC has already paid Rs 700.44 crore of the total insured deposits.
The Bombay High Court observed that “pending appeal before the appellate authority, operation of the August 8, 2022 order shall remain suspended and the appellate authority shall dispose of the appeal positively on October 17 in accordance with law.”