Case Brief
What Happened
The Reserve Bank of India cancelled the licence of Shri Yugprabhav Sahakari Bank Ltd., Vadodara (Gujarat) by order dated June 29, 2016. The release says the bank had an unsatisfactory financials and compliance record and had been advised to exit the ambit of the Banking Regulation Act, 1949 (AACS) and convert into a co-operative society. After fulfilling the stipulated conditions under Section 36(A)(2), it became Shree Yugprabhav Cooperative Society Ltd. As a result, it ceased to be a co-operative bank and all provisions of the Act applicable to it stopped applying. The bank was also prohibited from carrying on banking business in India under Section 22 read with Section 56 of the Banking Regulation Act, including acceptance and repayment of deposits.