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RBI cancels licence of Hyderabad Cooperative Urban Bank

Written by: Staff
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Mumbai, Mar 21 (UNI) Reserve Bank of India(RBI) today cancelled the licence of the Hyderabad Cooperative Urban Bank.

''In view of the fact that the Hyderabad Cooperative Urban Bank Ltd, Yakutpura, Hyderabad, (Andhra Pradesh) had ceased to be solvent, all efforts to revive it, in close consultation with the Government of Andhra Pradesh, had failed and the depositors of the bank were being inconvenienced by continued uncertainty,'' a RBI release said.

Today the central bank delivered the order, cancelling its licence to the bank after the close of business on March seven.

Immediately on cancellation of the licence and at the request of the Reserve Bank, the State government on March appointed a liquidator for the bank, RBI said.

On liquidation, every depositor is entitled to repayment of his deposits up to a monetary ceiling of Rs 1,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

RBI decided to cancel the licence of the Hyderabad Cooperative Urban Bank as a final step after examining all the options for revival of the bank and in order to protect the interest of the depositors, the release added.

Consequent to the cancellation of its licence, the Hyderabad Cooperative Urban Bank is prohibited from carrying on 'banking business' as defined in section 5(b) of the Banking Regulation Act, 1949 (AACS), including acceptance and repayment of deposits.

UNI RRP GK SKB1859

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