RBI Cancels HCBL Co-operative Bank Licence Over Capital Shortfall
Reserve Bank of India (RBI) cancelled the licence of HCBL Co-operative Bank, a Lucknow-based urban cooperative bank, citing inadequate capital and no earning prospects. With immediate effect, the bank has ceased all banking operations, and the Uttar Pradesh Registrar of Cooperative Societies has been requested to appoint a liquidator to wind up the bank’s operations.
The cancellation decision was announced by the RBI on May 19, 2025. The action was taken under provisions of the Banking Regulation Act, 1949. It is part of RBI’s effort to protect depositors and maintain public confidence in the cooperative banking sector.
The UP Registrar of Cooperative Societies has been asked to,
The bank is prohibited from conducting any banking activity, including,
Significance of the Move
| Summary/Static | Details |
| Why in the news? | RBI Cancels HCBL Co-operative Bank Licence Over Capital Shortfall |
| Bank Name | HCBL Co-operative Bank, Lucknow |
| RBI Action | Licence cancelled on May 19, 2025 |
| Reason | Inadequate capital & poor earning prospects |
| DICGC Coverage | Deposits insured up to ₹5 lakh |
| % of Depositors | Fully Covered 98.69% |
| Amount Paid till Jan 31, 2025 | ₹21.24 crore |
| Legal Basis | Banking Regulation Act, 1949 |
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