The Reserve Bank of India (RBI) has cancelled the license of Lucknow-based HCBL Co-Operative Bank over multiple irregularities and authorities are to begin the liquidation process.
The bank had violated several provisions of the law and had been non-compliant leading to the RBI’s conclusion that depositors were at risk should the bank continue to operate.
As of the close of business on 19 May 2025, the bank can no longer conduct any banking business and authorities have been directed to begin the winding up and liquidation process.
The RBI’s cancellation order said the bank did not have enough capital and earning prospects. The bank also had been non-compliant on several licensing requirements under the Banking Regulation Act, 1949. Thus, the RBI concluded that it would be detrimental to the interests of depositors and the public if the bank continued its operations.
The order also noted the bank was unable to pay all its depositors in full.
On liquidation, each depositor would receive a claim on their deposit up to INR500,000 (USD5,844) from the Deposit Insurance and Credit Guarantee Corporation. As many as 98% of the depositors will receive their full deposits, according to data provided by the bank to the authorities.
