CURRENT AFFAIRS

Detailed explanation-1: -The banks whose permits have been cancelled by the RBI include Independence Cooperative Bank Limited, Mantha Urban Cooperative Bank Ltd, People’s Cooperative Bank Limited, Mudhol Cooperative Bank Limited, Millath Cooperative Bank Limited and others.

Detailed explanation-2: -Press Releases. Today, the Reserve Bank of India (RBI), vide order dated August 17, 2022, has cancelled the licence of “Deccan Urban Co-operative Bank Ltd., Vijayapur, Karnataka”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on August 18, 2022.

Detailed explanation-3: -The bank ceases to carry on banking business, with effect from the close of business on October 10, 2022, RBI said in a statement. Earlier in August 2022, it had cancelled the license of Pune-based Rupee Cooperative Bank. RBI action is facing legal challenge in Bombay High Court.

Detailed explanation-4: -In terms of provisions of the DICGC Act, 1961, on cancellation of registration as an insured bank, the Corporation is liable to pay every depositor, the eligible amount subject to the limit of the insurance cover, based on his deposit/s and loans in the bank as on the cut-off date.