RBI cancels licence of SitaraCo-operative Urban Bank Ltd.
Case Brief
The Reserve Bank of India cancelled the licence of Sitara Co-operative Urban Bank Ltd., Baghlingampally, Hyderabad (Andhra Pradesh). The cancellation prevents the bank from carrying on banking business under the Banking Regulation Act, 1949 (as applicable to co-operative societies) and bars it from accepting public deposits or permitting withdrawals by cheque, draft, order or otherwise.
The Reserve Bank of India cancelled the licence of Sitara Co-operative Urban Bank Ltd., Baghlingampally, Hyderabad (Andhra Pradesh) to carry on banking business. As a result, the bank is precluded from transacting the business of banking as defined in the Banking Regulation Act, 1949 (as applicable to co-operative societies), including accepting deposits from the public and allowing withdrawals by cheque, draft, order or otherwise.
Severity Assessment
Licence cancellation is a full operational prohibition and is always severity 5.
Sitara Co-operative Urban Bank Ltd. must stop all banking operations covered by its licence. Depositors are no longer able to place fresh deposits or withdraw funds through the normal banking channels described in the order, and the bank is barred from conducting banking business going forward.
Published as Sitara Co-operative Urban Bank Ltd.
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