The Reserve Bank of India (RBI) has cancelled the banking licence of Ajantha Urban Co-operative Bank Maryadit, citing insufficient capital and lack of sustainable earning potential. The decision takes immediate effect, halting the bank’s ability to carry out any banking operations from the close of business on Tuesday.
In a press release, the RBI stated that the bank’s current financial condition makes it incapable of repaying its depositors in full, thereby jeopardizing public interest. The bank is also deemed to be operating in a manner that could be detrimental to its customers.
Following the cancellation, the Registrar of Cooperative Societies, Maharashtra, has been approached to initiate the bank’s liquidation process and appoint a liquidator.
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91.55% Depositors to Get Full Refund via DICGC
As per data submitted by the bank, 91.55% of its depositors are eligible to receive their entire deposits through the Deposit Insurance and Credit Guarantee Corporation (DICGC), which insures bank deposits up to Rs 5 lakh per depositor.
As of April 3, 2025, DICGC has already disbursed Rs 275.22 crore to insured depositors of the bank.
No Longer Allowed to Operate as a Bank
With the revocation of its licence, Ajantha Urban Co-operative Bank Maryadit is barred from accepting or repaying deposits and conducting any form of banking activity henceforth. The RBI emphasized that allowing the bank to continue operations would have been harmful to depositors and the public at large, given its inability to meet financial obligations.
The move underscores the regulator’s ongoing efforts to ensure stability and protect depositor interests within India’s cooperative banking sector.