The RBI said in a statement on Monday that the bank has stopped operating from the evening of May 19.
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RBI Cancel Bank Licence: The Reserve Bank of India (RBI) has tightened its grip on another co-operative bank (HCBL Co-op Bank) and taken strict action. This time the central bank has canceled the license of a bank in Uttar Pradesh. The Reserve Bank of India has canceled the license of Lucknow’s HCBL Co-operative Bank. The central bank said that the bank does not have sufficient capital and earning prospects, due to which its license has been canceled. RBI said in a statement on Monday that the bank has stopped functioning from the evening of 19 May.
What is the detail
The Cooperative Commissioner and Registrar of Uttar Pradesh has also been requested to issue an order to close the bank and appoint a liquidator for the bank. On liquidation, every depositor will be entitled to receive the deposit insurance claim amount on his deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The RBI said that as per bank data, 98.69 per cent of depositors are entitled to receive the full amount of their deposits from DICGC.
What will happen to the customers’ money?
DICGC has already paid Rs 21.24 crore out of the total insured deposits as on January 31, 2025. RBI said that the cooperative bank has failed to comply with the requirements of certain sections of the Banking Regulation Act, 1949 and the continuation of the bank is not in the interest of its depositors. As a result of the cancellation of the license, HCBL Sahakari Bank has been prohibited from carrying out bank operations including deposits and withdrawals with immediate effect.
