Lucknow Urban Co-operative Bank’s Registration Cancelled by RBI
Moneylife Digital Team 02 October 2023
The Reserve Bank of India (RBI) has cancelled the certificate of registration of Lucknow Urban Co-operative Bank Ltd due to inadequate capital and the Bank’s failure to comply with banking regulations. Lucknow Urban Co-operative Bank ceased to carry on banking business on 29 September 2023.
RBI says that the Bank does not have adequate capital and earning prospects and has failed to comply with the requirements of the Banking Regulation Act.
“The continuance of the Bank was prejudicial to the interests of its depositors. With their present financial position, the Bank would be unable to pay their present depositors in full. The public interest would be adversely affected if the Bank is allowed to carry on its banking business any further,” RBI says.
According to the RBI, on liquidation, every depositor in Lucknow Urban Co-operative Bank would be entitled to receive the deposit insurance claim amount of his/ her deposits up to Rs5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC).
As per the data submitted by the Bank, 99.53% of the depositors are entitled to receive full amount of their deposits from DICGC.
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