Uttar Pradesh-based United India Co-operative Bank licence get cancelled by RBI

RBI cancelled the United India Co-operative Bank Reserve Bank of India had cancelled the licence of the United India Cooperative Bank Ltd, located in Bijnor, Uttar Pradesh, due to insufficient capital

RBI cancelled the United India Co-operative Bank

RBI had cancelled the United India Cooperative Bank Ltd, based in Bijnor, Uttar Pradesh, due to inadequate capital and poor earning prospects. From now on “United India Co-operative Bank Limited, Bijnor, Uttar Pradesh,” is now promptly restricted from conducting banking operations. This includes a range of activities, such as the acceptance and repayment of deposits, as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949. RBI had restricted the United India Cooperative Bank as it lacks sufficient capital and promising earning prospects, which can be a threat to the interests of its depositors, as its current financial position may hinder its ability to fully repay its depositors. According to the data provided by United India Cooperative Bank, an overwhelming majority of its depositors, specifically 99.98%, are entitled to receive the full amount of their deposits from DICGC.

RBI had cancelled 40+Coperative bank


What happens if a bank license is Cancelled?

Once the licence is cancelled, the Commissioner for Cooperation and Registrar of Cooperative Societies is requested to issue an order for winding up the bank and appoint a liquidator.

When RBI can cancel a bank license?

Reasons for cancellation varied from inadequate capital to failure to comply with legal regulations under the Banking Regulation Act and lack of earning prospects in the future.