RBI canceled the license of Lucknow Urban Co-operative Bank, know the reason

Lucknow. The Reserve Bank of India has cancelled the banking license of Lucknow Urban Co-operative Bank. Let us tell you that 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.
The reason for cancellation of banking license of Lucknow Urban Co-operative Bank is said to be lack of sufficient 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. On closure of Lucknow Urban Co-operative Bank, every depositor will be entitled to receive from the Deposit Insurance and Credit Guarantee Corporation in lieu of his deposit up to a monetary limit of Rs 5 lakh.
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According to the data presented by the bank, 99.53% of the depositors are entitled to get their entire deposit amount from DICGC. 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. Cancellation of the license of Lucknow Urban Co-operative Bank is also a part of this process.
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