rbi: RBI cancels licence of United India Co-operative Bank

The Reserve Financial institution of India (RBI) on Wednesday stated it has cancelled the licence of Uttar Pradesh-based United India Co-operative Financial institution Restricted, citing lack of enough capital and incomes prospects. Consequently, the financial institution ceases to hold on enterprise, with impact from the closing hours on Wednesday, the RBI stated in an announcement.

On liquidation, it stated each depositor can be entitled to obtain deposit insurance coverage declare quantity of his/her deposits as much as a ceiling of Rs 5 lakh from the Deposit Insurance coverage and Credit score Assure Company (DICGC).

“As per the information submitted by the financial institution, 99.98 per cent of the depositors are entitled to obtain full quantity of their deposits from DICGC,” it stated.

Giving causes for cancellation of the licence, it stated United India Co-operative Financial institution, based mostly out of Bijnor in Uttar Pradesh, doesn’t have enough capital and incomes prospects.

“The financial institution with its current monetary place can be unable to pay its current depositors in full,” the RBI stated, including that the continuance of the financial institution is prejudicial to the pursuits of its depositors.

With the licence cancelled, the financial institution has been prohibited from conducting common enterprise, which incorporates acceptance and compensation of deposits. The Commissioner and Registrar of Cooperative, Uttar Pradesh, has additionally been requested to problem an order for winding up the financial institution and appoint a liquidator for the financial institution.