Rupee Cooperative Bank will cease to exist

Rupee Cooperative Bank will cease to exist as a bank from September 22. Many of high value depositors are senior citizens. According to the bank, the high-value depositors will get back a maximum of Rs 5 lakh, regardless of their total deposit at the bank, after liquidation in accordance with the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act.

Altogether 99% of the depositors, according to the RBI and the bank, are entitled to receive a full refund of deposits under the DICGC Act, as their deposits were under Rs 5 lakh each. Around Rs 700 crore have already been disbursed to 64,000 depositors, who had deposits under Rs 5 lakh each, under the DICGC Act. Sources added that another Rs 250 crore were linked to those with deposits of under Rs 5 lakh each.