RBI Canceled United India Co-operative Bank License: The Reserve Bank of India has issued an order canceling the license of this cooperative bank located in Bijnor, Uttar Pradesh on 14 July 2023 and its services have been banned from 19 July.
The Reserve Bank of India (RBI) has canceled the license of a co-operative bank in Uttar Pradesh. The bank on which action has been taken, its name is United India Co-operative Bank Limited (United India Co-operative Bank) and it is located in Nagina, Bijnor. The central bank has asked the commissioner and cooperative registrar to close this bank while banning its banking business.
Sufficient capital and no possibility of earning
Reserve Bank has asked the UP Commissioner and Co-operative Registrar to issue an order to close the bank and appoint a liquidator. This action to cancel the license of United India Co-operative Bank has been taken under Section 56 of the Banking Regulation Act, 1949 of DICGC. RBI has said that the cooperative bank does not have sufficient capital and earning potential.
All services closed from July 19.
It has been said by the RBI that the United India Co-operative Bank Limited does not comply with the provisions of Section 11 (1) and Section 22 (3) (D) of the Banking Regulation Act, 1949 along with Section-56. All types of services of the bank have been banned from 19 July 2023 with immediate effect. For this, the central bank had issued an order on 14 July. Banned services also include depositing money and repayment.
According to Business Today, in its order to cancel the license
of this co-operative bank of Uttar Pradesh, RBI said that according to the bank’s data, 99.98 percent of the depositors of this bank have deposited their deposits with DICGC. Entitled to full deposit amount. According to the central regarding liquidation, every depositor can claim his deposit amount up to the monetary limit of Rs 5,00,000 through the Deposit Insurance and Credit Guarantee Corporation.
This is the reason for the cancellation of the license,
the Reserve Bank said in its order that if the action taken on the United India Co-operative Bank has been taken keeping many aspects in mind. Public interest will be adversely affected if the bank is allowed to carry on its banking business. The major reason for this is that the bank with its current financial condition will be unable to pay its depositors in full.
