Nagpur/Pune: The Reserve Bank of India (RBI) cancelled the licence of Pune’s Rupee Cooperative Bank, drawing a curtain over the bank that has faced restrictions since 2013.
One of the major urban cooperative banks in Maharashtra, Rupee Cooperative Bank has presence in other parts of the state as well. In 2013, the bank’s Board of Directors was dismissed by the RBI and Sudhir Pandit and others were appointed administrators to look after it.
In a statement issued by the RBI, it has been said that in compliance with the order of Bombay High Court dated September 12, 2017, the license of the Pune-based Rupee Co-operative Bank Limited has been cancelled. This order of cancellation will be effective after six weeks from August 10, 2022.
The Bombay High Court in 2017 had issued the said order in respect of Writ Petition No. 2938 of 2014 (Bank Employees Union, Pune vs State of Maharashtra & Others), Writ Petition No. 9286 of 2017 (Naresh Vasant Raut & others vs State of Maharashtra & others) . After this order, due to the action taken by RBI, the bank will stop doing business from September 22.
RBI the RBI statement further said that the Cooperative Commissioner of Maharashtra and the Registrar of Cooperative Societies have also been requested to issue an order for the closure of the bank and appoint a liquidator.
The RBI cited various reasons including lack of adequate capital and earning possibility, as well as harm to public interest if the bank is allowed to function. The statement said the bank would not be able to repay its depositors in full and thus it was not necessary for the bank to exist.
This decision came even as the administrators continued their efforts to resurrect the bank. Action against delinquent directors and employees for the non-payment of loans and the confiscation of properties was undertaken by the administrators. The bank had reported profit after a series of measures such as voluntary retirement schemes for staff and the rationalisation of assets were taken. The bank was fitted with core banking software to ensure control and transparency.
