CURRENT AFFAIRS : BANKING & FINANCE
RBI cancels Adoor Co-operative Urban Bank’s banking licence, allows to operate as a non-banking Institution
- The Reserve Bank of India (RBI) has cancelled the banking licence of Kerala-based Adoor Co-operative Urban Bank and has allowed it to function as a non-banking institution.
- The cancellation of the bank’s license and its new categorisation as a non-banking Institution has been done under various sections of the Banking Regulation Act, 1949.
- The Bank was granted a license in January 1987.
- Further, the bank has to repay unpaid and unclaimed deposits of non-members held by it, whenever demanded, even after being notified as a non-banking Institution.
What is the difference between Bank & NBFC?
- According to RBI, the difference between a bank and NBFC is that a bank is a government-authorised entity that provides banking services to the people, whereas NBFC is a company providing banking services to the people without holding a bank licence.
