The Reserve Bank of India (RBI) has canceled the license of Vijayawada-based ‘The Durga Co-operative Urban Bank’. RBI has canceled the license of the bank due to lack of adequate capital and earning prospects.
The Reserve Bank said that the bank will close the banking business from the close of business on November 12, 2024. Also, the Cooperative Commissioner of Andhra Pradesh and the Registrar of Cooperative Societies have been requested to issue an order to close the bank and appoint a liquidator.
95.8 percent of depositors will get their money
On liquidation, every depositor will be entitled to receive deposit insurance claim amount on deposits up to a limit of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI said, ‘According to the data submitted by the bank, 95.8 percent of the depositors are entitled to receive the full amount of their deposits from DICGC.’ DICGC has paid Rs 9.84 crore out of the total insured deposits till August 31, 2024.