HCBL Co-operative Bank Ltd., Lucknow, Uttar Pradesh

RBI cancelled the licence of HCBL Co-operative Bank Ltd., Lucknow on May 19, 2025. The bank must cease banking business immediately.

The bank must stop all banking operations immediately, including accepting and repaying deposits. Depositors’ claims will move into liquidation and DICGC insurance, up to the statutory ceiling of ₹5 lakh per depositor, subject to the DICGC Act. RBI also requested winding-up and appointment of a liquidator, so the bank’s operations are being wound down rather than continued.

• Section 11(1) of the Banking Regulation Act, 1949
• Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949
• Sections 22(3)(a), 22(3)(b), 22(3)(c), 22(3)(d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949

+2 more in the case brief

RBI has extended its existing Section 35A directions on HCBL Co-operative Bank Ltd., Lucknow for three more months. The terms remain unchanged.

The bank must continue operating under the same RBI-imposed conditions until May 24, 2025, subject to review. Depositors, customers, and counterparties remain affected by the ongoing restrictions, but no new operational terms are introduced in this release.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI extended its existing directions against HCBL Co-operative Bank Ltd., Lucknow for three more months. The original restrictions continue unchanged through February 24, 2025, subject to review.

HCBL Co-operative Bank Ltd., Lucknow remains subject to the same RBI-imposed operating restrictions during the extended period. The bank must continue complying with the directive until close of business on February 24, 2025, unless the RBI reviews or modifies it earlier.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI extended the existing Section 35A Directions on HCBL Co-operative Bank Ltd., Lucknow for three more months. The earlier terms continue unchanged.

The bank remains under RBI-imposed operating conditions through February 24, 2024, and must continue complying with the unchanged Directions. Depositors, members, and counterparties remain subject to the restrictions already in force until RBI modifies or withdraws them.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949
• sub-section (1) of Section 35A read with Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

RBI imposed a ₹11 lakh penalty on HCBL Co-operative Bank Ltd., Lucknow for regulatory non-compliance. The violations related to loans to directors/relatives, excessive lending to single borrowers, and deposit-rate directions under SAF.

The bank must absorb the monetary penalty and address the compliance deficiencies identified by RBI. The order does not invalidate customer transactions, but it underscores ongoing supervisory expectations around insider lending, concentration limits, and deposit-rate directions.

• Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949

RBI placed HCBL Co-operative Bank Ltd., Lucknow under Section 35A restrictions. The bank cannot undertake several core activities without prior RBI approval, and depositor withdrawals are blocked subject to limited conditions.

The bank must operate under RBI-imposed restrictions for six months from the close of business on February 24, 2023, unless modified earlier. Customers face severe limits on withdrawals and the bank cannot freely extend credit, raise funds, accept fresh deposits, or dispose of assets without RBI approval.

• Section 35 A of the Banking Regulation Act, 1949
• Section 56 of the Banking Regulation Act, 1949
• Section 18A of the DICGC Act (amendment) 2021

RBI withdrew the Section 35A directions earlier imposed on HCBL Co-operative Bank Ltd., Lucknow. The bank may continue normal banking operations.

The bank is no longer subject to the earlier Section 35A directions from April 13, 2018 onward. Its regular banking operations may continue without the withdrawn restrictions, and the release does not impose any new compliance burden on depositors or counterparties.

• Section 35A of the Banking Regulation Act, 1949
• sub-section (2) of section 35A of the Banking Regulation Act, 1949

RBI extended the existing Section 35A directions on HCBL Co-operative Bank Ltd., Lucknow for six more months. The other terms of the directive remain unchanged.

HCBL Co-operative Bank will continue operating under the existing RBI restrictions until April 15, 2018, subject to review. The bank must comply with the unchanged conditions of the directive, and the restriction continues to affect its operations and the public dealing with the bank.

• Section 35A of the Banking Regulation Act, 1949 (AACS)

RBI has extended its existing directions on HCBL Co-operative Bank Ltd., Lucknow for another six months. The earlier conditions continue unchanged.

HCBL Co-operative Bank must continue operating under the RBI’s existing restrictions until October 15, 2017, unless the directive is modified earlier. The bank’s customers and counterparties remain subject to the operational limits imposed by the directions during this period.

• Section 35A of the Banking Regulation Act, 1949 (AACS)

RBI extended the existing Section 35A directions on HCBL Co-operative Bank, Lucknow, until April 15, 2017. The original terms of the restriction were left unchanged.

HCBL Co-operative Bank continues to operate under RBI-imposed restrictions through April 15, 2017, with any existing operational limitations still in force. The bank, its customers, and counterparties remain subject to the unchanged terms of the directive until RBI modifies or withdraws it.

• Section 35A of the Banking Regulation Act, 1949 (AACS)

RBI extended the existing Section 35A directions on HCBL Co-operative Bank Ltd., Lucknow until October 15, 2016. The earlier terms and conditions remain unchanged.

HCBL Co-operative Bank Ltd. remains subject to RBI operating restrictions through October 15, 2016, unless modified earlier by the RBI. The bank must continue complying with the existing directive, and the public can inspect a copy of the directive at the bank’s premises.

• Section 35A of the Banking Regulation Act, 1949 (AACS)

RBI has extended the Section 35A directions on HCBL Co-operative Bank Ltd., Lucknow until April 15, 2016. The bank remains under restrictions on lending, deposits, payments, and disposal of assets.

HCBL Co-operative Bank must continue operating under RBI-imposed restrictions through April 15, 2016, with no new lending, investment, fresh deposit acceptance, or unrestricted payment/disposal powers. Depositors remain constrained to withdrawals up to their account balances, and existing term deposits cannot be renewed.

• Section 35A(1) of the Banking Regulation Act, 1949 read with Section 56 of the Banking Regulation Act, 1949

RBI relaxed the directive on HCBL Co-operative Bank, Lucknow, removing the ceiling on deposit withdrawals. The bank’s other restrictions from the earlier order continue unchanged until October 15, 2015, subject to review.

Depositors may now access their entire balances, though the bank can first adjust amounts against any borrower/surety liabilities. Other restrictions from the earlier directive still apply to the bank until October 15, 2015, unless further modified or withdrawn.

• Section 35A read with Section 56 of the Banking Regulation Act, 1949

RBI placed HCBL Co-operative Bank Ltd., Lucknow under Section 35A restrictions for six months. The bank faces limits on lending, investments, liabilities, fresh deposits, payments, and depositor withdrawals.

The bank must operate under tight restrictions for the stated six-month period and can undertake banking business only within RBI’s prescribed limits. Depositors may withdraw only up to ₹1 lakh per account (subject to set-off rules), while borrowers and other counterparties face restrictions on new credit, renewals, payments, liabilities, and asset transactions unless RBI approves otherwise. The order is reviewable, so the restrictions may be modified later depending on the bank’s financial position.

• Section 35A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
• Section 56 of the Banking Regulation Act, 1949