Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Dec 2002
Case Brief
RBI cancelled, by order dated December 4, 2002, the licence of Sevalal Urban Co-operative Bank Ltd., Mandrup, Dist. Solapur, Maharashtra, to carry on banking business. The cancellation means the co-operative bank is barred from transacting banking business under the Banking Regulation Act, 1949 (as applicable to co-operative societies). It may not accept deposits from the public or allow withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
By order dated December 4, 2002, RBI cancelled the licence granted to Sevalal Urban Co-operative Bank Ltd., Mandrup, Dist. Solapur, Maharashtra, to carry on banking business. As a result, the bank is precluded from transacting the business of banking under the Banking Regulation Act, 1949 (as applicable to co-operative societies), including accepting public deposits and allowing withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must cease banking operations as licensed, and customers/depositors cannot continue normal deposit or withdrawal transactions through the institution. The restriction is immediate from the order date unless otherwise specified.
Regulatory Basis
- Banking Regulation Act, 1949 (As applicable to Co-operative Societies)
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 4 Dec 2002
- Effective From
- 4 Dec 2002
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank