Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
17 Nov 2016
Case Brief
The Reserve Bank of India cancelled the licence issued to Sai Nagari Sahakari Bank Limited, Hadgaon. The action was taken consequent upon the bank’s merger with Shankar Nagari Sahakari Bank Limited, Nanded, and was issued under Section 22 of the Banking Regulation Act, 1949 (as applicable to cooperative societies).
Why RBI Acted
The Reserve Bank of India cancelled the licence issued to Sai Nagari Sahakari Bank Limited, Hadgaon because it had merged with Shankar Nagari Sahakari Bank Limited, Nanded. The cancellation was made under Section 22 of the Banking Regulation Act, 1949 (as applicable to cooperative societies).
Operating Impact
Sai Nagari Sahakari Bank Limited, Hadgaon can no longer operate as a licensed bank under the cancelled licence. The cancellation takes effect from August 26, 2016, following the merger, and affects the bank’s ability to continue banking business independently.
Regulatory Basis
- Section 22 of Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) (ACCS)
Action Facts
- Primary Impact
- License cancellation
- Effective From
- 26 Aug 2016
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank