RBI cancels licence of Deccan Urban Co-operative Bank

The RBI said the licence of Deccan Urban Co-operative Bank, Karnataka, has been cancelled as the lender does not have adequate capital and earning prospects.

As per the data submitted by the bank, more than 99 per cent of the depositors are entitled to receive the full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC), the central bank said in a release.

The cooperative bank ceases to carry on banking business, with effect from the close of business.

It also said the Vijayapur-based bank with its present financial position would be unable to pay its present depositors in full.

The RBI has requested the Commissioner for Cooperation and Registrar of Cooperative Societies, Karnataka, to issue an order for winding up the bank and appoint a liquidator for the bank.