Case Brief
RBI, by order dated July 14, 2023, cancelled the licence of United India Co-operative Bank Limited, Nagina, Bijnor, Uttar Pradesh. The bank was found to lack adequate capital and earning prospects and to be non-compliant with multiple provisions of the Banking Regulation Act, 1949. RBI said the bank's continuance would be prejudicial to depositors, it would be unable to pay depositors in full, and public interest would be adversely affected if it were allowed to continue banking business. Following the cancellation, the bank is prohibited from conducting banking business, including accepting and repaying deposits, with effect from the close of business on July 19, 2023, and the state cooperative registrar was requested to initiate winding-up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location