98.69 percent customers will get all the money deposited in the account
The Reserve Bank of India (RBI) has canceled the license of HCBL Co-operative Bank of Lucknow. The central bank said that the bank does not have enough capital and earnings possibilities, due to which its license has been canceled. The RBI said in a statement on Monday that the bank has stopped functioning from the evening of May 19. The co-operative 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.
98.69 percent customers will get all the money deposited in the account
On the liquidator, each depositor will be entitled to receive the insurance claim amount deposited on its deposit up to Rs 5 lakh from the deposit insurance and loan guarantee corporation (DICGC). RBI said that according to the bank’s data, 98.69 percent of the depositors are entitled to receive the entire amount of their deposit from DICGC. DICGC has already paid Rs 21.24 crore out of the total insured deposits by 31 January, 2025. Let us tell you that in April last month, the RBI took action against several banks and canceled the licenses of several co-operative banks. Last month, co-operative banks whose licenses were canceled include the color merchants co-operative bank of Ahmedabad, Ajanta Urban Co-operative Bank of Aurangabad and the imparry Urban Co-operative Bank of Jalandhar.
Customers will not be able to withdraw money from account
The RBI said that Lucknow’s HCBL Co-operative Bank has failed to follow the requirements of some sections of the Banking Regulation Act, 1949 and the running of the bank is not in the interest of its depositors or customers. As a result of the cancellation of the license, HCBL Cooperative Bank has been banned from bank functioning, including immediate effect and withdrawal. This directly means that HCBL co-operative bank customers will not be able to deposit money in their account nor withdraw money from the account.
With PTI inputs
Latest business news
