RBI cancels license of People’s Co-operative Bank in Uttar Pradesh
The Reserve Bank of India has canceled the license of People’s Co-operative Bank Limited in Uttar Pradesh.
The bank ceases to carry on banking business, with effect from the close of business on March 21, 2022, the RBI said. The license was canceled as the bank didn’t have adequate capital and earning prospects, it added.
“The Commissioner for Cooperation and Registrar of Cooperative Societies, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank,” the RBI said.
Its financial position wouldn’t allow the bank to pay the depositors in full and public interest would be affected if it was allowed to carry on, the regulator said.
People’s Co-operative Bank was prohibited from conducting the business of “banking”, which includes acceptance and repayment of deposits.
On liquidation, every depositor would be entitled to receive deposit insurance claim amount of their deposits up to Rs.5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), the RBI said.
According to the data submitted by the bank, more than 99 % of the depositors are entitled to receive the full amount of their deposits from DICGC, the regulator added.
