The Reserve Bank of India has cancelled the licence of Pioneer Urban Co-operative Bank which is based in Lucknow, Uttar Pradesh.
The UCB has been stopped from carrying on banking business.
“As such, the bank cannot transact the business of ‘banking’ as defined in Section 5(b) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), including acceptance/repayment of deposits” , an RBI release reads.
The licence was cancelled under Section 22 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) read with Section 56 of Banking Regulation Act, 1949, it added.