Case Brief
RBI cancelled the banking licence of Lucknow Urban Co-operative Bank Ltd., Lucknow, Uttar Pradesh by order dated September 28, 2023. The regulator cited inadequate capital and earning prospects, non-compliance with Sections 11(1) and 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949, and failure to meet the requirements of Sections 22(3)(a) through 22(3)(e) read with Section 56. RBI said continuation of the bank would be prejudicial to depositors, the bank would be unable to pay present depositors in full, and public interest would be adversely affected. RBI also requested the Commissioner and Registrar of Cooperative, Uttar Pradesh to initiate winding up and appoint a liquidator.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Co-operative bank
- Location
- Lucknow, Uttar Pradesh