- The Reserve Bank of India (RBI) has decided to cancel the certificate of registration (CoR) for Ajantha Urban Cooperative Bank Maryadit, located in Aurangabad.
- This decision comes as a result of the bank’s insufficient capital and bleak earnings outlook.
- The RBI has instructed Ajantha Urban Cooperative Bank to cease its banking operations starting from April 22, 2025.
- According to the RBI, the bank lacks the necessary capital and earning potential, and it has not met the standards set by the Banking Regulation Act.
- “The ongoing operation of Ajantha Urban Cooperative Bank poses a risk to the interests of its depositors.
The Reserve Bank of India (RBI) has decided to cancel the certificate of registration (CoR) for Ajantha Urban Cooperative Bank Maryadit, located in Aurangabad. This decision comes as a result of the bank’s insufficient capital and bleak earnings outlook. The RBI has instructed Ajantha Urban Cooperative Bank to cease its banking operations starting from April 22, 2025.
According to the RBI, the bank lacks the necessary capital and earning potential, and it has not met the standards set by the Banking Regulation Act.
“The ongoing operation of Ajantha Urban Cooperative Bank poses a risk to the interests of its depositors. Given its current financial state, the bank would struggle to repay its depositors in full. Allowing the bank to continue its operations would negatively impact the public interest,” the RBI stated
With the cancellation of its license, Ajantha Urban Cooperative Bank is barred from conducting any business, which includes accepting new deposits or repaying existing ones.
The RBI has also noted that in the event of liquidation, every depositor at Ajantha Urban Cooperative Bank is eligible to receive a deposit insurance claim of up to Rs5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Based on the information provided by Ajantha Urban Cooperative Bank, 91.55% of depositors are set to receive the full amount of their deposits from the DICGC. As of April 3, 2025, the DICGC has already disbursed Rs275.22 crore of the total insured deposits, based on claims received from depositors of the Aurangabad-based bank.