Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
21 Sept 2023
Case Brief
RBI has cancelled the banking licence of The Ananthasayanam Co-operative Bank Ltd., Trivandrum, Kerala, originally granted in 1987, under the Banking Regulation Act, 1949. The bank has been notified as a non-banking institution under Section 36A(2) read with Section 56. As a result, it must stop carrying on the business of banking, including acceptance of deposits from non-members, with immediate effect, and must repay unpaid and unclaimed deposits of non-members whenever demanded.
Why RBI Acted
RBI notified The Ananthasayanam Co-operative Bank Ltd., Trivandrum as a non-banking institution under Section 36A(2) read with Section 56 of the Banking Regulation Act, 1949, and cancelled the licence originally granted on December 19, 1987 under Section 22 read with Section 56. The bank is required to stop conducting the business of banking, including acceptance of deposits from non-members, with immediate effect, and must repay unpaid and unclaimed deposits of non-members whenever demanded.
Operating Impact
The entity can no longer operate as a bank and must immediately halt banking business, including taking deposits from non-members. It remains obligated to repay any unpaid or unclaimed non-member deposits on demand, even after being classified as a non-banking institution.
Regulatory Basis
- Section 36A(2) read with Section 56 of the Banking Regulation Act, 1949
- Section 22 read with Section 56 of the Banking Regulation Act, 1949
- Section 5(b) of the Act ibid
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 19 Dec 1987
- Effective From
- 21 Sept 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank