Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
29 Jun 2002
Case Brief
The Reserve Bank of India has cancelled the banking licence of Shri Adinath Sahakari Bank Ltd., Pune, Maharashtra. The order precludes the co-operative bank from transacting the business of banking under the Banking Regulation Act, 1949 (as applicable to co-operative societies), and specifically prohibits it from accepting deposits from the public or allowing withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence granted to Shri Adinath Sahakari Bank Ltd., Pune, under the Banking Regulation Act, 1949 (as applicable to co-operative societies). As a result, the bank is precluded from transacting banking business and is not permitted to accept deposits from the public or allow withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must stop carrying on banking business and cannot accept public deposits or permit withdrawals. Customers/depositors are directly affected because routine account operations are no longer allowed after the licence cancellation.
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