RBI Shuts Down HCBL Co-operative Bank in Lucknow Over Capital and Compliance Shortfalls

The Reserve Bank of India (RBI) has cancelled the licence of Lucknow-based HCBL Co-operative Bank with effect from May 19, 2025, due to the bank's failure to maintain enough capital and earn poor earnings prospects. The RBI stated that the bank was unable to meet key regulatory requirements, making it not fit to continue its banking operations. Therefore, HCBL Co-operative Bank is directed not to accept any deposits or conduct the business of banking, and all banking operations must be wound up immediately.

 

This measure follows issuance of repeated warnings and is aimed at protecting depositors' interests and stability in the banking system. The RBI noted that the bank's financial position was not viable, and permitting it to operate further would have adversely affected public confidence in the cooperative banking system.

 

Source: FinTechBizNews, Business Standard, HelloBanker, RBI Press Release