United India Co-operative Bank Limited, with headquarters in Uttar Pradesh, has had its license revoked by the Reserve Bank of India (RBI), claiming a lack of sufficient capital and revenue possibilities.
Every depositor would be eligible to receive up to Rs. 5 lakh in deposit insurance claim money from the Deposit Insurance and Credit Guarantee Corporation when the bank stops operating.
According to a statement released on Wednesday by the Reserve Bank of India (RBI), United India Co-operative Bank Limited’s license has been revoked due to insufficient capital and earning potential.
As a result, the bank stops operating as of Wednesday’s closing time, according to a statement from the RBI.
Regarding liquidation, it said that each depositor would be entitled to receive a deposit insurance claim amount of his or her savings from the Deposit Insurance and Credit Guarantee Corporation (DICGC), up to a maximum of Rs. 5 lakh.
According to the bank’s data, “99.98% of the depositors are entitled to receive the full amount of their deposits from DICGC,” the statement read.
Giving justification for the license revocation, it said that United India Co-operative Bank, with headquarters in Bijnor, Uttar Pradesh, lacked sufficient capital and future earnings potential.
According to the RBI, “the bank with its current financial position would be unable to pay its present depositors in full,” adding that the bank’s continued existence is detrimental to the interests of its depositors.
The bank is not permitted to carry on ordinary operations, including accepting and returning deposits, as the license has been revoked.
Additionally, an order for the bank’s closure and the appointment of a liquidator have been requested from the Commissioner and Registrar of Cooperatives in the state of Uttar Pradesh.
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