RBI cancels licence of Lucknow-based HCBL Co-operative Bank
This story was originally published at 19:52 IST on 19 May 2025
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MUMBAI – The Reserve Bank of India Monday cancelled the licence of Lucknow-based HCBL Co-operative Bank with immediate effect. The bank will cease to carry on banking business from the close of business on Monday, the RBI said.
The RBI has requested the Commissioner and Registrar of Co-operatives in Uttar Pradesh to issue an order to wind up the bank and appoint a liquidator, the RBI release said.
The central bank cancelled the license of the co-operative bank as it does not have adequate capital and earning prospects. RBI said that the bank has failed to comply with the requirements under various sections of the Banking Regulation Act, 1949.
The continuance of the bank is prejudicial to the interests of the depositors as the bank, in its present financial position, will not be able to pay its present depositors in full, the RBI said. Public interest will be adversely affected if the bank is allowed to carry on its banking business any further, the central bank said.
On liquidation, every depositor will receive the deposit insurance claim amount of their deposits up to a monetary ceiling of INR 500,000 from the Deposit Insurance and Credit Guarantee Corp., the RBI said.
As per the data submitted by the bank, 98.69% of the depositors are entitled to receive the full amount of their deposits from the Deposit Insurance and Credit Guarantee Corp., the RBI said.
As on Jan. 31, the Deposit Insurance and Credit Guarantee Corp. has already paid INR 212.4 million of the total insured deposits based on the willingness received from the concerned depositors of the bank, the RBI said. End
Reported by Kshipra Petkar
Edited by Saji George Titus
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