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RBI’s Action: One Bank License Cancelled, Another Fined

25Jul

By AnkitNo Comments

Banking

RBI’s Action: One Bank License Cancelled, Another Fined

The Reserve Bank of India (RBI) has taken strict action against two banks, highlighting its commitment to maintaining financial stability. Uravakonda Co-operative Town Bank License Cancelled The RBI has cancelled the license of the Uravakonda Co-operative Town Bank Limited located in Uravakonda, Andhra Pradesh. This means the bank is no longer permitted to conduct banking business, including accepting or returning deposits. The decision was made due to the bank's inadequate capital and earning prospects, leading to non-compliance with provisions of the Banking Regulation Act. The RBI concluded that allowing the bank to continue would be detrimental to depositors' interests. Depositors' Rights Depositors of the Uravakonda Co-operative Town Bank Limited are...

AU Small Finance Bank for Universal Bank License? : RBI Circular Sparks Discussions

In a recent development, the Reserve Bank of India (RBI) issued a circular that has set the stage for AU Small Finance Bank (AU SFB) to deliberate on its potential eligibility and feasibility for a universal bank license. This move has generated significant interest and speculation within the banking industry. The circular has caught the attention of stakeholders, investors, and market participants, as it holds the potential to reshape the landscape of banking in India. In this article, we will explore the implications of the RBI circular and its potential impact on AU SFB. Let’s understand AU Small Finance Bank AU Small Finance Bank, a Jaipur-based financial institution, began operations as an NBFC-MFI (Non-Banking Financial Company - Microfinance Institution) in 1996. Over ...

Small Finance Bank License: RBI denied licenses 2 more entities

In a recent development, the Reserve Bank of India (RBI) has turned down two more applications for (SFB) Small Finance Bank licenses, as reported by Moneycontrol. This decision marks a continuation of the stringent scrutiny exercised by the central bank in granting licenses for SFBs. Background of Bank Licenses The central bank had received a total of 12 applications for both small finance bank licenses and universal bank licenses. These applications were submitted by various entities aiming to set up financial institutions that cater to specific segments of the population. The RBI's decision comes amidst the backdrop of a rigorous evaluation process that assesses various aspects including financial stability, governance structures, and business models. With the Indian banking s...