The Reserve Bank of India (RBI) has cancelled 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 cancelled.
RBI said that the bank has stopped functioning from the evening of 19 May. 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 deposit insurance claim amount on his deposits up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
RBI said that as per the bank’s data, 98.69 per cent of the depositors are entitled to receive the full amount of their deposits from DICGC. 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 Cooperative Bank has been prohibited from bank operations including deposits and withdrawals with immediate effect.
