Overview

• The Reserve Bank of India cancelled the licence of HCBL Co-operative Bank due to inadequate capital, poor earnings, and regulatory noncompliance.
• Effective May 19, 2025, the bank is prohibited from all banking activities, including accepting or repaying deposits.
• The Uttar Pradesh Registrar has been tasked with winding up the bank and appointing a liquidator to oversee its closure.
• The Deposit Insurance and Credit Guarantee Corporation (DICGC) will reimburse depositors up to ₹5 lakh, covering 98.69% of accounts, with ₹21.24 crore already disbursed.
• This action is part of a broader regulatory crackdown on financially unstable cooperative banks across India.