Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
1 Oct 2004
Case Brief
The Reserve Bank of India cancelled the licence of Sriganganagar Urban Cooperative Bank Ltd., Sriganganagar, Rajasthan on September 4, 2004. The cancellation was made under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). As a result, the bank is prohibited from transacting banking business and cannot accept deposits from the public or permit withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of Sriganganagar Urban Cooperative Bank Ltd., Sriganganagar, Rajasthan on September 4, 2004. The cancellation was issued under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies), and the bank was thereby precluded from carrying on banking business, including accepting public deposits and allowing withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must stop all banking operations covered by its licence, including accepting deposits and processing withdrawals. Depositors and counterparties are directly affected because the institution can no longer function as a bank.
Regulatory Basis
- Section 22 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies)
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 4 Sept 2004
- Effective From
- 4 Sept 2004
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank