BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Many Co-operative Banks has their licenses cancelled by RBI. Why?

A	Because of financial indiscipline
B	Because of staff and management rift
C	As a result of labour unrest
D	Owing to voluntary surrender by the co-operative

Explanation:

Detailed explanation-1: -PACS are outside the purview of the Banking Regulation Act, 1949 and hence not regulated by the Reserve Bank of India. StCBs/DCCBs are registered under the provisions of State Cooperative Societies Act of the State concerned and are regulated by the Reserve Bank.

Detailed explanation-2: -Consequently, the bank ceases to carry on banking business, with effect from the close of business on August 18, 2022. The Commissioner for Cooperation and Registrar of Cooperative Societies, Karnataka has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

Detailed explanation-3: -Synopsis. The Reserve Bank of India on Thursday said the licence of Deccan Urban Co-operative Bank, Karnataka, has been cancelled as the lender does not have adequate capital and earning prospects.

There is 1 question to complete.