Cuddalore, Tamil Nadu, February 6, 2025: The Reserve Bank of India (RBI) has cancelled the banking licence of The Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd., Cuddalore, Tamil Nadu. The decision, effective from the close of business on February 6, 2025, follows the RBI’s notification under Section 36A(2) read with Section 56 of the Banking Regulation Act, 1949, reclassifying the entity as a non-banking institution.
The licence, originally granted on March 21, 2000, has been revoked under Section 22 read with Section 56 of the Banking Regulation Act, 1949. As a result, the bank is no longer permitted to carry out banking operations in India, including accepting deposits from non-members. This move mandates the immediate cessation of all banking activities as defined under Section 5(b) of the Act.
Despite the licence cancellation, The Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd. is obligated to ensure the repayment of any unpaid and unclaimed deposits held by non-members. These repayments must be honored whenever demanded, even after the bank’s reclassification as a non-banking institution.
This regulatory action reflects the RBI’s ongoing efforts to maintain the stability and integrity of the financial system while ensuring that depositors’ interests are safeguarded.