RBI Revokes License of Ajantha Urban Co-operative Bank Amid Financial Challenges

The Reserve Bank of India (RBI) has cancelled the licence of Ajantha Urban Co-operative Bank Maryadit in Aurangabad due to inadequate capital and earnings. Consequently, the bank must cease its banking operations from April 22, 2025. Depositors will receive up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).

The Reserve Bank of India has taken decisive action against Ajantha Urban Co-operative Bank Maryadit, revoking its license due to insufficient capital and bleak financial prospects. This decision comes into effect at the close of business on April 22, 2025.

The Maharashtra Registrar of Cooperative Societies has been requested to proceed with winding up procedures for the bank, including appointing a liquidator. Depositors are assured of receiving up to Rs 5 lakh insurance claim per deposit from DICGC, with 91.55% expected to recover their full deposit amounts.

The RBI cited the bank's inability to meet depositor obligations and potential harm to public interest as reasons for the license cancellation. The bank is now barred from all banking operations such as deposit acceptance and repayment.

(With inputs from agencies.)