Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Mar 2003
Case Brief
The Reserve Bank of India cancelled the licence of Pratibha Mahila Sahakari Bank Ltd., Jalgaon, Dist. Jalgaon (Maharashtra), by order dated February 25, 2003. The cancellation means the co-operative bank is precluded from transacting banking business under the Banking Regulation Act, 1949 (as applicable to Co-operative Societies), and it cannot accept deposits from the public or permit withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled, by order dated February 25, 2003, the licence granted to Pratibha Mahila Sahakari Bank Ltd., Jalgaon, to carry on banking business. As a result, the bank is precluded from transacting banking business under the Banking Regulation Act, 1949 (as applicable to co-operative societies), including accepting deposits and allowing withdrawals.
Operating Impact
The bank must stop carrying on banking business immediately and cannot accept fresh deposits or honor withdrawal instructions. Depositors and counterparties are directly affected because routine banking operations are no longer permitted.
Regulatory Basis
- Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 25 Feb 2003
- Effective From
- 25 Feb 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank