RBI has cancelled the license of the bank. Banking business has been closed since February 6. This bank can continue business as an NBFC. Let us know what impact this action will have on the customers?
Bank License Cancelled: The Reserve Bank of India (RBI) always takes strict steps in the interest of the customers. So far in the year 2025, it has imposed a fine on 27 banks. The license of 10 NBFCs has been canceled. Last year, RBI canceled the license of 12 banks. Now the Cuddalore and Villupuram DCCB Employees Cooperative Bank Limited located in Tamil Nadu has been hit.
RBI has canceled the license of the bank and issued an order to close the banking business from 6 February 2025. The license was issued to this bank on 21 March 2020.
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Can work as a non-banking financial company
The Reserve Bank of India has decided to notify this bank as a non-banking institution under Section 36A(2) along with Section 56 of the Banking Regulation Act 1949. It will not be allowed to accept demand deposits. It will also not be able to provide services like debit card payment, online payment, cash withdrawal etc.
Unclaimed and unclaimed deposits to be repaid
The RBI notice said, “The Cuddalore and Villupuram DCCB Employees Co-operative Bank Ltd., even after being notified as a banking institution, shall ensure repayment of unclaimed and unclaimed deposits of non-members held by it, as and when demanded.”
