Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 Mar 2004
Case Brief
The Reserve Bank of India cancelled the licence of Sree Swamy Gnanananda Yogeeswara Mahila Cooperative Urban Bank Ltd., Puttur, Andhra Pradesh under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The bank is precluded from transacting banking business, including accepting deposits from the public and allowing withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
RBI cancelled the licence of the cooperative urban bank under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). As a result, the bank is precluded from transacting banking business and cannot accept deposits from the public or allow withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must cease banking operations and cannot accept deposits or permit withdrawals in the ordinary course. Depositors and other counterparties are affected because the institution is no longer permitted to carry on banking business.
Regulatory Basis
- Section 22 of the 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