Recorded RBI impact
Cease and desist
Cease and desist · Fresh imposition
Published by RBI
14 Jun 2017
Case Brief
The Reserve Bank of India found that Prithvi Credit Co-operative Society Limited, Lucknow, was displaying false statements on its website suggesting that RBI had issued an NOC for converting the society into a multistate cooperative bank. RBI clarified that it had issued no such NOC and stated that the society had wrongly quoted an RBI letter dated February 08, 2017. RBI advised the society to immediately delete the false and misleading statements from its website and publish a corrigendum clarifying the correct position.
Why RBI Acted
RBI noted that Prithvi Credit Co-operative Society Limited was misleading the public by publishing false statements on its website and wrongly quoting an RBI letter to suggest that RBI had issued an NOC for conversion into a multistate cooperative bank. RBI clarified that no such NOC had been issued and advised the society to immediately remove/delete the false and misleading declarations and issue a corrigendum.
Operating Impact
The society must remove the misleading website content and issue a corrigendum. The action is aimed at preventing public misrepresentation; depositors and the general public are cautioned not to rely on the false claim of RBI approval for conversion.
Action Facts
- Primary Impact
- Cease and desist
- Order Date
- 8 Feb 2017
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank