Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Feb 2013
Case Brief
The Reserve Bank of India cancelled the banking licence of Abhinav Sahakari Bank Ltd., Rahuri, Dist. Ahmednagar, Maharashtra by order dated February 1, 2013 under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). Following the cancellation, the bank was precluded from transacting banking business, including acceptance and repayment of deposits, forthwith.
Why RBI Acted
By order dated February 1, 2013, the Reserve Bank of India cancelled the licence of Abhinav Sahakari Bank Ltd., Rahuri, Dist. Ahmednagar, Maharashtra under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). As a result, the bank was precluded from transacting the business of banking, including acceptance and repayment of deposits, with immediate effect.
Operating Impact
The bank cannot carry on banking operations anymore, and customers are immediately affected because the institution is barred from accepting or repaying deposits. The restriction is effective forthwith.
Regulatory Basis
- Section 22 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
- Section 5(b) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 1 Feb 2013
- Effective From
- 1 Feb 2013
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank