• The Reserve Bank of India (RBI) has revoked the license of The Durga Co-operative Urban Bank in Vijayawada, Andhra Pradesh, citing insufficient capital and earning prospects. The bank will cease operations at the close of business on November 12, 2024.
• Approximately 95.8% of the bank's depositors are eligible to receive the full amount of their deposits, up to a limit of Rs 5 lakh, through the Deposit Insurance and Credit Guarantee Corporation (DICGC). DICGC has already disbursed Rs 9.84 crore out of the total insured deposits as of August 31, 2024.
• The bank's inability to comply with the Banking Regulation Act, 1949, and its weak financial position prompted the RBI to take this action. While most depositors are protected by deposit insurance, those with deposits exceeding Rs 5 lakh may face potential losses.