The Bombay High Court has given a major relief on the same day that the Rupiah Co-operative Bank, which is facing losses due to violation of rules and financial irregularities, will be banned forever. The Bombay High Court has stayed the order of the Reserve Bank of India dated August 8, 2022. In this sequence, RBI ordered cancellation of the license of Rupee Bank. But now this decision has been stayed by the Bombay High Court, bank official Sudhir Pandit has informed.
The court has stayed the action of the RBI on the same day that the bank was to be banned forever, when all the efforts of the court and the Union Finance Ministry to save the rupee bank failed. In the order of August 8, an order was issued by the RBI to cancel the license of this bank. But the Bombay High Court has said that this decision should be postponed till October 17. This decision is being told a big deal for those account holders, whose money is still stuck in this bank.
The six-week deadline given by the RBI to file an appeal against the RBI’s decision expired yesterday. Rupee Bank had appealed against this decision of the Reserve Bank in the Union Finance Ministry. However, since the hearing has been fixed for October 17 without any interim relief, today the court has directed that the license of the bank should not be canceled till 17th. As a last resort, the bank tried to appeal to the High Court and was relieved that the license would not be revoked, at least till the hearing. The prosecution action against this bank was to start from today. It is understood that this action has also been postponed.
The cooperative sector has got relief from the court’s decision. After this the court should formulate and approve a separate policy regarding the merger of cooperative banks. RBI will have to take decisions accordingly and there will be no dispute. While giving the final verdict on Rs.
Having a centuries-old heritage and established in 1912, this old co-operative bank has been under administrative rule for the last few years. Till now ‘Rupee’ has Rs 830 crore in cash, Rs 80 crore in assets. This bank has an outstanding loan of about 100 crores. As per the provisions of the amended Deposit Insurance Protection Act, 2021, the Deposit Insurance Corporation has refunded the deposits of 64 thousand 24 depositors (with deposits up to 5 lakhs) valuing 700.44 crores. However, the money of a few thousand depositors is still stuck in the bank.
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