The Reserve Bank of India cancelled the license of Uttar Pradesh’s Bijnor based United India Cooperative Bank due to lack of adequate capital and earning prospectus. As per the data submitted by the bank, 99.98% of the depositors are entitled to receive the full amount of their deposits from DICGC, RBI’s press release stated.

• On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961.
• The Reserve Bank cancelled the licence of the bank, as it does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949.
• The bank has failed to comply with the requirements of Sections 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949 and the continuance of the bank is prejudicial to the interests of its depositors, said RBI in its press release.