RBI canceled the license of this bank! Do you have an account? Jagran Business

21 Jul, 2023 Author: Tarun Kohli

The RBI has revoked the licence of Uttar Pradesh's cooperative bank, United India Cooperative Bank Limited. The bank took this step due to a lack of capital and a low revenue potential. The RBI stated in a statement issued on Wednesday that the bank will be unable to conduct business as of Wednesday evening due to the licence cancellation. The central bank made this decision with the protection of its consumers in mind.

Bank is harmful for depositors

The RBI stated that the bank's existence is detrimental to the interests of its depositors. With the revocation of the licence, the bank is no longer permitted to conduct regular business, including receiving deposits and processing repayments. The United India Co-operative Bank Limited failed to comply with the Banking Regulation Act's Sections 22(3)(A), 22(3)(B), 22(3)(C), 22(3)(D), and 22(3)(E). As a result, the central bank made this judgement.

The RBI has stated that this bank is unsuitable for depositors and customers' interests. Due to the bank's financial situation, the full sum cannot be given to the customer. In this case, customers of the bank can withdraw up to Rs 5,00,000 from the Deposit and Credit Guarantee Corporation (DIGCS) under depositor guidelines.