Through a press release the regulator the Reserve Bank of India has informed people about the closure of a UCB named Hardoi Urban Co-operative Bank Ltd based in Hardoi of the state Uttar Pradesh.
The release reads “It is hereby notified for the information of the public that the the Reserve Bank of India (RBI) has cancelled vide order dated August 11, 2017, the license of Hardoi Urban Co-operative Bank Ltd., Hardoi, Uttar Pradesh.
The UCB cannot carry on banking business under section 22 of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949 with effect from close of business on August 30, 2017.
As such, the bank is precluded from transacting the business of ‘banking’ as defined in Section 5(b) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) including acceptance/ repayment of deposits, forthwith.