The Reserve Bank of India (RBI) has revoked the banking license of HCBL Co-operative Bank, based in Lucknow, with immediate effect. This decision was made due to the bank’s inadequate capital reserves and lack of viable prospects for future profitability. As a result, HCBL ceased all banking operations as of the evening of May 19, 2025.
In a formal request, the RBI has urged the Co-operative Commissioner and Registrar of Uttar Pradesh to initiate the full closure of the bank. Additionally, a liquidator will be appointed to oversee the settlement of the bank’s assets and liabilities.
To protect depositors, the RBI assured that each account holder is eligible to receive up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme. This amount serves as a compensation for their deposits.
According to RBI data, nearly 98.69% of the bank’s depositors are fully covered under this insurance. As of January 31, 2025, the DICGC had already disbursed ₹21.24 crore in insured claims to eligible depositors.
The RBI cited repeated violations of several provisions under the Banking Regulation Act, 1949 as a key reason behind the cancellation. Continuing the bank’s operations was deemed detrimental to the interests of depositors.
Following the cancellation, HCBL Co-operative Bank is now prohibited from conducting any form of banking activity—including accepting new deposits, repaying existing ones, or allowing withdrawals.
If you are an account holder at HCBL, you will need to file an insurance claim through the DICGC to recover your eligible funds. Further instructions will be issued by the bank’s administration or appointed liquidator to guide depositors through the claims process.
Leave a Reply