Big news from Reserve Bank of India, this bank's license has been canceled, RBI New UpdateRBI New Update: Reserve Bank of India (RBI) is the central banking institution of the country. It monitors banks and financial institutions and sets rules for them. RBI inspects banks from time to time and if any bank violates the rules then action is taken against it
Lucknow Urban Co-operative Bank's license cancelled
Recently, RBI has cancelled the banking license of Lucknow Urban Co-operative Bank. The reason cited is lack of adequate capital and earning prospects. RBI has also requested the Cooperative Commissioner and Registrar of Uttar Pradesh to issue an order to close this bank and appoint a liquidator.
Protecting the interest of depositors
Upon closure of Lucknow Urban Co-operative Bank, every depositor will be entitled to receive a refund of his/her deposits up to a monetary limit of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). As per data submitted by the bank, 99.53% of depositors are entitled to receive their entire deposits from DICGC.
Functions of RBI
The main function of RBI is to decide the monetary policy of the country and control the banking system. It inspects banks from time to time and if any bank violates the rules then action is taken against it. Cancelling the license of Lucknow Urban Co-operative Bank is also a part of this process.
The prime objective of RBI is to protect the interests of investors and depositors in the banking system. In the case of Lucknow Urban Co-operative Bank, RBI has taken appropriate action while protecting the interests of depositors. This step will help in maintaining credibility and transparency in the banking system.