Shri Yugprabhav Sahakari Bank Ltd., Vadodara (Gujarat)

RBI cancelled the licence of Shri Yugprabhav Sahakari Bank Ltd., Vadodara (Gujarat) and converted it into a co-operative society. The bank can no longer conduct banking business or accept/repay deposits.

The entity cannot operate as a bank anymore and is barred from banking business, including accepting or repaying deposits. Customers and counterparties can no longer treat it as a co-operative bank; the change takes effect from the cancellation/conversion order date stated in the release (June 29, 2016).

• Section 36(A)(2) of the Banking Regulation Act, 1949 (AACS)
• Section 5 (cci) of the Banking Regulation Act, 1949 read with Section 56 of the Act
• Section 22 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

+1 more in the case brief

RBI imposed a ₹5 lakh penalty on Shri Yugprabhav Sahakari Bank Ltd., Vadodara.

The bank must absorb the ₹5 lakh penalty; the release does not describe any operating restriction, suspension, or withdrawal impact. The action is retrospective enforcement only, with no new forward-looking cap or prohibition stated for customers or counterparties.

• Section 47A (1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies)