Big Action by RBI: The Reserve Bank of India (RBI), taking a major decision, has canceled the license of HCBL Co-operative Bank in Lucknow with immediate effect. Taking this tough step on Monday, the central bank said that the bank neither has enough capital nor any concrete possibility of earning in future, due to which this action was necessary.
RBI has made it clear in one of its statements that this bank has completely stopped its functioning since the evening of May 19. Also, the Cooperative Commissioner and Registrar of Uttar Pradesh have also been requested to issue an order to close the bank and appoint a liquidator for this. So if you also have an account with this bank, then this news is very important for you.
Don’t worry! 98.69% depositors will get their entire money back
In this process of bank closure, every depositor will have the right to get a deposit insurance claim of up to ₹ 5 lakh on his deposit. This security deposit will be given by the Insurance and Credit Guarantee Corporation (DICGC).
RBI has stated that according to data given by the bank, almost 98.69 percent depositors are entitled to get back their entire deposit from DICGCIt is a matter of relief that DICGC has already paid ₹ 21.24 crore from the total insured deposits by 31 January 2025.
Remind you that last month also the RBI took action on several banks and canceled the licenses of some cooperative banks. These included the color merchants co-operative bank of Ahmedabad, Ajanta Urban Co-operative Bank of Aurangabad and the Imperial Urban Co-operative Bank of Jalandhar.
Why did RBI impose a ban?
The RBI has clearly stated that HCBL Cooperative Bank of Lucknow has failed to follow some necessary provisions of the Banking Regulation Act, 1949. The central bank believes that continuing the functioning of this bank is not in the interest of its depositors or customers at all.
After the license is canceled, HCBL Cooperative Bank has been banned on all types of banking works with immediate effect, including depositing and withdrawing money.
This simply means that HCBL co-operative bank customers will now not be able to deposit money in their account nor withdraw money from their account. This is certainly a major setback for customers who deposited their hard earned money in this bank. However, they will definitely get some relief by securing deposits of up to ₹ 5 lakh through DICGC.
