RBI cancels the licence of Lucknow Urban Co-operative Bank Ltd., Lucknow, Uttar Pradesh - ஆர்பிஐ - Reserve Bank of India
RBI cancels the licence of Lucknow Urban Co-operative Bank Ltd., Lucknow, Uttar Pradesh
Today, the Reserve Bank of India (RBI), vide order dated September 28, 2023, has cancelled the licence of Lucknow Urban Co-operative Bank Ltd., Lucknow, Uttar Pradesh. Consequently, the bank ceases to carry on banking business, with effect from the close of business on September 29, 2023. The Commissioner and Registrar of Cooperative, 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:
2. Consequent to the cancellation of its licence, Lucknow Urban Co-operative Bank Ltd., Lucknow, Uttar Pradesh is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect. 3. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961. As per the data submitted by the bank, 99.53% of the depositors are entitled to receive full amount of their deposits from DICGC. (Yogesh Dayal) Press Release: 2023-2024/1023 |