RBI cancels licence of WB’s United Co-operative Bank

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Kolkata: The Reserve Bank of India (RBI) on Thursday said it has cancelled the licence of the United Co-operative Bank Ltd, Bagnan in West Bengal as the bank does not have adequate capital and earning prospects.

The Central bank has taken the decision after it found that the bank doesn’t have adequate capital and earning prospects, RBI said in an order dated May 10, 2021.

Consequently, the bank ceased 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.

However, depositers have nothing much to worry, as they will receive the full amount of their deposits, thanks to the Deposit Insurance and Credit Guarantee Corporation (DICGC). However, depositors are entitled to receive claim benefits of up to Rs 5 lakh.

Giving details, the RBI said the bank does not have adequate capital and earning prospects. Also, the bank with its present financial position would be unable to pay its present depositors in full, it added.

United Co-operative Bank has been prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits with immediate effect.

The RBI has requested the Registrar of Cooperative Societies, West Bengal to issue an order for winding up the bank and appoint a liquidator.

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