Reserve Bank of India (RBI), Deputy Governor, K C Chakrabarty as said that the country's central bank is soon likely to cancel licenses of 26 loss-making co-operative banks.
Of these 26 loss-making banks, 16 alone are based in the state of Uttar Pradesh. A capital worth Rs 2,000 crore is required to continue operating these 16 banks, and RBI will not cancel their licenses in case the state government agrees to support them, Chakrabarty said.
While adding that banking is a business, he said that the loss-making banks should be shut down as they have already been given several chances to perform well, keeping in mind the investors' interest.
Talking about the new banking licences, he said that RBI will consider the applications submitted in this regard by June this year.
In the meanwhile, the Deputy Governor also said that bank is initially planning to launch plastic notes in the four metro cities as a pilot project. Later, these notes will be expanded to other parts of the country based on its success.