Reserve Bank of India cancels the licence of Purvanchal Co-operative Bank Ltd., Ghazipur, Uttar Pradesh

The Reserve Bank of India (RBI) cancelled the licence of Purvanchal Co-operative Bank Ltd., Ghazipur, Uttar Pradesh, effective June 15, 2024, due to inadequate capital and earning prospects. The bank failed to comply with several provisions of the Banking Regulation Act, 1949, and its continuance was deemed prejudicial to depositors' interests. Consequently, the bank must cease banking operations. Depositors are entitled to receive up to ₹5,00,000 from the Deposit Insurance and Credit Guarantee Corporation (DICGC). About 99.51% of depositors will receive the full amount of their deposits, with ₹12.63 crore already paid by DICGC as of May 30, 2024.