PTI | , Posted via Singh Rahul Sunilkumar
The Reserve Bank of India (RBI) on Wednesday mentioned it has canceled the license of Uttar Pradesh-based United India Co-operative Bank Limited, bringing up loss of good enough capital and incomes potentialities.
Consequently, the financial institution ceases to hold on trade, with impact from the final hours on Wednesday, the RBI mentioned in a remark.
On liquidation, it mentioned each depositor can be entitled to obtain deposit insurance coverage declare quantity of his/her deposits as much as a ceiling of 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
“As per the data submitted by the bank, 99.98 per cent of the depositors are entitled to receive full amount of their deposits from DICGC,” it mentioned.
Giving causes for cancellation of the licence, it mentioned United India Co-operative Bank, founded out of Bijnor in Uttar Pradesh, does now not have good enough capital and incomes potentialities.
“The bank with its present financial position would be unable to pay its present depositors in full,” the RBI mentioned, including that the continuation of the financial institution is prejudicial to the pursuits of its depositors.
With the license cancelled, the financial institution has been prohibited from carrying out common trade, which contains acceptance and reimbursement of deposits.
The Commissioner and Registrar of Cooperatives, Uttar Pradesh, has additionally been asked to factor an order for polishing off the financial institution and appoint a liquidator for the financial institution.