RBI cancels the Licence of the Pioneer Urban Co-operative Bank Ltd., Lucknow, Uttar Pradesh - ਆਰਬੀਆਈ - Reserve Bank of India
RBI cancels the Licence of the Pioneer Urban Co-operative Bank Ltd., Lucknow, Uttar Pradesh
The Reserve Bank of India (RBI) has, vide order dated July 15, 2016 cancelled the licence of Pioneer Urban Co-operative Bank Ltd., Lucknow, Uttar Pradesh to carry on banking business. The order was made effective from the close of business on July 25, 2016. The Registrar of Co-operative Societies Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. The Reserve Bank cancelled the licence of the bank as:
Consequent to the cancellation of its licence, Pioneer Urban Co-operative Bank Ltd., Lucknow, is prohibited from conducting the business of ‘banking’ as defined in Section 5(b) of the B R Act, 1949 (AACS) with immediate effect. With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of Pioneer Urban Co-operative Bank Ltd., Lucknow (Uttar Pradesh), as per the DICGC Act, 1961 will be set in motion. On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of ₹ 1,00,000/- (Rupees One lakh only) from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per usual terms and conditions. Ajit Prasad Press Release : 2016-2017/335 |