Rupee Cooperative Bank gets RBI extension

Rupee Cooperative Bank has been granted an extension for its banking licence by the Reserve Bank of India (RBI) for another three months, up to February 2022. This is the 27th extension given by the RBI to the bank till date.

Rupee has submitted various options for resolution of the bank, which include an exploratory proposal for merger. The RBI has given an undertaking in the Bombay High Court to take an appropriate decision before December 31 with respect to the resolution of the bank, Sudhir Pandit, administrator of the bank, said.

Pandit said investors have approached the bank and a multi-state schedule cooperative bank has submitted a preliminary proposal for a merger for approval to the RBI. The RBI has invoked provisions of Section 18A (7) of the DICGC Amendment Act, 2021, and advised the DICGC to defer the refund of deposits up to Rs 5 lakh for another ninety months, he said.

The bank has recovered a total Rs 326.49 crore, earned operating profit aggregating to Rs 70.82 crore during the last five years and disbursed Rs 376.95 crore to 95,115 depositors under hardship withdrawal, according to the note.