Reserve Bank of India cancels the licence of HCBL Co-operative Bank Ltd., Lucknow

Case Brief

The Reserve Bank of India cancelled the licence of HCBL Co-operative Bank Ltd., Lucknow vide order dated May 19, 2025. RBI cited inadequate capital and earning prospects, non-compliance with Section 11(1) and Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949, and failure to comply with Sections 22(3)(a) to 22(3)(e) read with Section 56. RBI said the bank’s continuation would be prejudicial to depositors, that it would be unable to pay present depositors in full, and that public interest would be adversely affected. Consequent to cancellation, the bank is prohibited from conducting banking business, including acceptance and repayment of deposits, with immediate effect. The Commissioner and Registrar of Cooperative, Uttar Pradesh was also requested to initiate winding up and appoint a liquidator.