Current Affairs - Banking - Discussion

The Reserve Bank of India has announced that the licence of Alwar Urban Co-operative Bank in Alwar, Rajasthan has been cancelled as it is not in a position to pay its depositors in full as and when their claims accrue, among other reasons. The reasons for the cancellation of the licence were, the bank does not have adequate capital and earning prospects, and hence does not comply with the relevant provisions of the Banking Regulation Act, 1949.