Context:
The Reserve Bank of India (RBI) has cancelled the banking licence of Ajantha Urban Co-operative Bank Maryadit, based in Aurangabad, Maharashtra, citing inadequate capital and poor earning prospects.
Effective From
- Date of Cancellation: April 22, 2025
- The bank has ceased all banking operations from this date.
Winding-up Process
- RBI has requested the Registrar of Cooperative Societies, Maharashtra, to:
- Initiate liquidation proceedings
- Appoint a liquidator
Depositor Protection under DICGC
- Depositors will be eligible for reimbursement up to ₹5 lakh per depositor via the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- 91.55% of depositors will receive their entire deposits under this coverage.
- As of April 3, 2025:
- DICGC has already paid ₹275.22 crore to insured depositors.
RBI’s Justification
- The bank:
- Cannot fully repay its depositors
- Has no viable recovery path
- Continuing operations would be:
- Against public interest
- Detrimental to depositors
Post-Cancellation Restrictions
The bank is prohibited from all banking activities, including:
- Accepting new deposits
- Repaying existing deposits
Recent RBI Development
- April 2025: RBI updated norms to allow minors aged 10 and above to independently operate savings and term deposit accounts, promoting early financial literacy.
About the RBI
- Established: April 1, 1935
- Headquarters: Mumbai, Maharashtra
- Governor: Sanjay Malhotra
- RBI is India’s central banking authority, regulating monetary policy and financial stability.
