RBI Cancels License of Ajantha Urban Co-operative Bank Amid Financial Concerns

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RBI Cancels License of Ajantha Urban Co-operative Bank Amid Financial Concerns

The Reserve Bank of India has revoked the banking license of Ajantha Urban Co-operative Bank Maryadit, Aurangabad, citing financial instability and non-compliance with regulatory norms. This decision follows an extended period of operational restrictions imposed on the bank, which failed to improve its liquidity position and meet the required standards for safe banking practices.

The cancellation of the license means that the bank can no longer conduct banking operations, including accepting deposits or granting loans. Eligible depositors will be entitled to claim up to Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation scheme, ensuring partial protection for their savings.

The RBI’s move underscores its commitment to safeguarding the interests of depositors and maintaining stability in the cooperative banking sector. Ajantha Urban Co-operative Bank had been under scrutiny for its inability to meet financial obligations and adhere to directives aimed at improving its operational health.

This development is part of a broader trend of increased regulatory oversight in the cooperative banking sector, with the RBI taking stringent measures to address governance issues and protect depositors from potential risks.

Banking Sector Update:
- RBI cancels the license of Ajantha Urban Co-operative Bank due to financial instability.
- Depositors can claim up to Rs 5 lakh under the DICGC scheme.
- The decision reflects heightened regulatory scrutiny in the cooperative banking sector.

Sources: RBI Press Release, Indian Cooperative.