The Reserve Bank of India (RBI) consistently enforces stringent regulations to protect customers’ interests. In 2025 alone, penalties have been imposed on 27 banks, and the licenses of 10 Non-Banking Financial Companies (NBFCs) have been revoked. In comparison, 12 banks faced license cancellations last year. Now, the latest institution affected by RBI’s actions is Cuddalore and Villupuram DCCB Employees Cooperative Bank Limited, located in Tamil Nadu.
RBI Cancels License of Cuddalore and Villupuram DCCB Employees Cooperative Bank
RBI has officially canceled the bank’s license and mandated the cessation of its banking operations from February 6, 2025. The bank had initially received its license on March 21, 2020.
Under the provisions of Section 36A(2) and Section 56 of the Banking Regulation Act, 1949, the Reserve Bank of India has declared this institution a non-banking entity. Consequently, the bank will no longer be authorized to accept demand deposits or provide essential financial services such as debit card transactions, online payments, and cash withdrawals.
Restrictions Imposed on the Bank
The RBI has issued a notice stating:
“The Cuddalore and Villupuram DCCB Employees Co-operative Bank Ltd., even after being declared a non-banking entity, must ensure the repayment of all unpaid deposits of non-members upon request.”
This development underscores the RBI’s commitment to maintaining financial stability and safeguarding customers from institutions that fail to meet regulatory standards. The central bank continues to monitor financial entities closely, ensuring compliance with banking regulations for a secure financial ecosystem.
