Mumbai, Apr 22 (PTI) The Reserve Bank on Tuesday said it has cancelled the licence of Ajantha Urban Co-operative Bank Maryadit, Aurangabad, as the lender does not have adequate capital and earning prospects.
Consequently, the bank ceases to carry on banking business, with effect from the close of business on Tuesday (April 22, 2025), the Reserve Bank of India (RBI) said in a statement.
The Registrar of Cooperative Societies, Maharashtra, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.
On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).
As per the data submitted by the bank, the RBI said 91.55 per cent of the depositors are entitled to receiving full amount of their deposits from DICGC.
As on April 3, 2025, DICGC has already paid ₹275.22 crore of the total insured deposits.
Giving reasons for cancellation of the licence of Ajantha Urban Co-operative Bank Maryadit, it said the bank with its present financial position would be unable to pay its present depositors in full; and public interest would be adversely affected if the lender is allowed to carry on banking business any further.
Also, the continuance of the bank is prejudicial to the interests of its depositors.
Consequent to the cancellation of its licence, Ajantha Urban Co-operative Bank Maryadit has been prohibited from conducting the business of ‘banking’, which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect.
