Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
7 Aug 2002
Case Brief
The Reserve Bank of India cancelled the licence of Shree Labh Co-operative Bank Ltd., Mumbai, Maharashtra, to carry on banking business in India. The order precludes the bank from transacting banking business under the Banking Regulation Act, 1949 (as applicable to co-operative societies), including accepting public deposits and permitting withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of Shree Labh Co-operative Bank Ltd., Mumbai, Maharashtra, to carry on banking business in India. 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 deposits from the public and allowing withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must stop banking operations immediately and cannot accept deposits or allow withdrawals. Customers and counterparties are affected because the institution is no longer authorized to conduct banking business.
Regulatory Basis
- Banking Regulation Act, 1949 (as applicable to Co-operative Societies)
Action Facts
- Primary Impact
- License cancellation
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank