reserve Bank of India Said on Thursday the license of Deccan Urban Co-operative Bank, Karnataka, has been canceled as the lender does not have sufficient capital and earning prospects. As per the data furnished by the bank, over 99 per cent of the depositors are entitled to receive the full amount of their deposits. deposit Insurance and Credit Guarantee Corporation (DICGC), the central bank said in a release.

The Co-Operative Bank ceases to do banking business from the close of business on Thursday.

“The bank does not have sufficient capital and earning prospects,” reserve Bank of India Announcing the cancellation of the licence.

It also said that the Vijayapur-based bank with its current financial position would be unable to make full payments to its existing depositors.

RBI has requested the Commissioner of Co-operatives and Registrar of Co-operative Societies, Karnataka to issue an order to close the bank and appoint a liquidator for the bank.

Upon liquidation, each depositor shall be entitled to receive the deposit insurance claim amount of his deposits up to 5 lakh DICGC.

As of August 06, 2022, DICGC has already paid Rs 13.07 crore of the total Sum Assured.

In another release, RBI said it has imposed a penalty of Rs 5,93,000 Obopay Mobile Technology India Pvt Ltd For non-compliance with certain provisions of the norms prepaid payment instrument (PPI) and Know Your Customer (KYC).

However, the central bank said the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entity with its customers.