Finance ministry to decide on Rupee Bank employees federation plea on October 31

The federation had earlier requested finance minister Nirmala Sitharaman that in the larger interest of the depositors, the ministry must consider the merger of RCB with another private bank

The finance ministry will give its decision on the Rupee Co-operative Bank (RCB) employees federation plea on October 31.

Reserve Bank of India (RBI) on August 8 cancelled the licence of RCB, saying the Pune-based lender does not have adequate capital, and earning prospects and it does not comply with regulations. (REPRESENTATIVE PHOTO)

The federation had earlier requested finance minister Nirmala Sitharaman that in the larger interest of the depositors, the ministry must consider the merger of RCB with another private bank.

Reserve Bank of India (RBI) on August 8 cancelled the licence of RCB, saying the Pune-based lender does not have adequate capital, and earning prospects and it does not comply with regulations.

However, the High Court in a writ petition filed by the RCB federation, an order dated September 22 suspended the cancellation order dated August 8 till the conclusion of the appeal filed by RCB before the appellate authority.

Subsequently, the Supreme Court of India in the petition for special leave for appeal vide order dated September 30, has directed that the order of stay which was granted by the High Court of Bombay shall stand restricted to the period up to and inclusive of October 31.

Bhalchandra Kulkarni, a member of the depositors’ association, said, “We don’t want liquidation process as the process of merger is on and RBI must take a positive decision on it. The RBI has extended the deadline till November 22 and we are hopeful about a successful merger with a private bank and the RBI must cooperate with us.”