Lucknow Urban Co-Operative Bank license canceled : The Reserve Bank of India has now canceled the license of a bank. The name of this bank is Lucknow Urban Co-operative Bank. This step has been taken by RBI since the bank does not have sufficient capital and there are no earning possibilities. Let us know the update regarding this…
Lucknow Urban Co-Operative Bank license canceled : Crores of people in the country have bank accounts. People keep their deposits safe in banks but many times even big banks have been seen getting closed. Meanwhile, a big update has come out regarding a bank and RBI has taken a big decision. Many decisions have been taken by the Reserve Bank of India from time to time. Along with this, the licenses of many banks have also been canceled by RBI. Now once again the license of a bank has been canceled by RBI. Actually, this step has been taken by RBI when the earning potential of the bank has ended.
reserve Bank of India
The Reserve Bank of India has canceled the license of Lucknow Urban Co-operative Bank. The reason for this is that the bank does not have enough capital and there are no earning possibilities left. The Reserve Bank said that the Cooperative Commissioner and Registrar of Uttar Pradesh has also been requested to issue an order to close the bank and appoint a liquidator for the cooperative bank.
Lucknow Urban Co-operative Bank
On liquidation, every depositor will be entitled to receive his deposits under deposit insurance from the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a monetary limit of Rs five lakh. The Reserve Bank said that as per the bank’s data, 99.53 per cent of depositors are entitled to receive the full amount of their deposits from DICGC.
Explaining the reason behind canceling the license, the Central Bank said that Lucknow Urban Co-operative Bank does not have enough capital and earning potential. As a result of the cancellation of license, the bank is prohibited from conducting banking business. This includes, among other things, acceptance of deposits and repayment of deposits with immediate effect.