License Cancelled: The Reserve Bank of India (RBI) on 22 April 2025 canceled the banking license of Ajanta Urban Cooperative Bank, Aurangabad, Maharashtra. RBI said in its statement that this decision has been taken due to the poor financial condition of the bank and negligible capital and earning prospects. The bank is now unable to do any banking business from 22 April and it has been completely closed.
The bank was running in loss
RBI said that Ajanta Urban Cooperative Bank neither had adequate capital nor profit making prospects. Due to this the future of the bank was considered insecure. The central bank has asked the Registrar of Cooperative Societies of the Government of Maharashtra to issue an order to officially close the bank and appoint a liquidator.
Relief to depositors: DICGC guarantee
Keeping in mind the interests of the bank’s depositors, every account holder will get a maximum insurance amount of up to ₹ 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC). This amount will be given according to the deposits present in their accounts. RBI informed that a total of 91.55 percent of the bank’s depositors are those whose deposits are ₹ 5 lakh or less. This means that these 91.55% customers will be able to get their entire deposit back.
What do customers have to do?
After the bank is closed, customers will have to fill the insurance claim form to get the money from DICGC. This process will be done under the guidance of the concerned liquidator. The customer has to make a claim with identity card and account details.
Question on the status of cooperative banks
This matter once again raises questions on the status and transparency of cooperative banks. Many cooperative banks have been closed in the last few years, which has shaken the confidence of the common customers. RBI has taken a strict stand on this and has started continuous monitoring of such banks.
