RBI has canceled the license of a cooperative bank in Uttar Pradesh. Orders related to this have also been issued. Bank will not be allowed any kind of transaction.
RBI Action: The Reserve Bank of India often takes tough decisions keeping in mind the safety of the customers. On 19th July i.e. today, RBI has canceled the license of United India Co-operative Bank Limited located in Bijnor, Nagina, Uttar Pradesh. An order related to this has also been requested from the Cooperative Commissioner and Registrar to close the bank and issue an order to appoint a liquidator on behalf of the Central Bank.
The banking business of the United India Co-operative Bank has been closed since Wednesday. The bank will not be permitted to accept deposits and repay deposits. RBI pointed out that the bank does not have sufficient capital and earning potential. The bank has failed to comply with the requirements of section 22(3) (a), 22(3) b, 22 (3) c, 22 (3) (d) and 22 (3) (e).
According to the Central Bank, the bank was said to be harmful to the interests of its depositors. Said that, “the bank with its current financial position will be unable to pay its depositors in full.”
Each depositor will be able to get an amount up to Rs 5,00, 000 from the Deposit and Credit Guarantee Corporation (DIGCS) subject to the rules.
