Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 Oct 2001
Case Brief
The Reserve Bank of India cancelled the licence of Sitara Co-operative Urban Bank Ltd., Baghlingampally, Hyderabad (Andhra Pradesh). The cancellation prevents the bank from carrying on banking business under the Banking Regulation Act, 1949 (as applicable to co-operative societies) and bars it from accepting public deposits or permitting withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of Sitara Co-operative Urban Bank Ltd., Baghlingampally, Hyderabad (Andhra Pradesh) to carry on banking business. As a result, the bank is precluded from transacting the business of banking as defined in 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
Sitara Co-operative Urban Bank Ltd. must stop all banking operations covered by its licence. Depositors are no longer able to place fresh deposits or withdraw funds through the normal banking channels described in the order, and the bank is barred from conducting banking business going forward.
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