The Reserve Bank of India (RBI) on Thursday said it has cancelled the licence of United Co-operative Bank Ltd, Bagnan, West Bengal, as it does not have adequate capital and earning prospects.
Photo Credit: PTI
The Reserve Bank of India on Thursday said it has cancelled the licence of United Co-operative Bank Ltd, Bagnan, West Bengal, as it does not have adequate capital and earning prospects.
Consequently, the bank ceases to carry on banking business, with effect from the close of business on May 13, 2021, the Reserve Bank of India said in a statement. As per the data submitted by the bank, all the depositors will receive full amount of their deposits from Deposit Insurance and Credit Guarantee Corporation (DICGC), it said.
On liquidation, every depositor would be entitled to receive deposit insurance claim amount in respect of his/her deposits up to a monetary ceiling of Rs 5 lakh from the DICGC subject to the provisions of the DICGC Act, 1961.
Through an order dated May 10, 2021, the central bank has prohibited the co-operative lender from carrying on banking business, with effect from the close of business on May 13, 2021
No respite for United Co-op Bank, West Bengal
Reserve Bank of India further extended the Directions on Bangan (West Bengal) based United Co-operative Bank for a period of two months from April 19, 2021 to June 18, 2021. A copy of the Directive is displayed at the bank’s premises for perusal of public.
The UCB was first placed under Direction from the close of business on July 18, 2018. It was modified from time to time which was last extended upto April 18, 2021.
The issue of the above Directions by Reserve Bank of India should not per se be construed as cancellation of banking licence.
The bank will continue to undertake banking business with restrictions till its financial position improves. Reserve Bank of India may consider modifications of these Directions depending upon circumstances from time to time.
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