Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
14 Aug 2002
Case Brief
The Reserve Bank of India cancelled the licence of The Kalwa Belapur Sahakari Bank Ltd., Navi Mumbai, Maharashtra, under the Banking Regulation Act, 1949 as applicable to co-operative societies. The cancellation precludes the bank from carrying on the business of banking, including accepting deposits from the public and permitting withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of The Kalwa Belapur Sahakari Bank Ltd., Navi Mumbai, Maharashtra, to carry on banking business under the Banking Regulation Act, 1949 (as applicable to co-operative societies). As a result, the bank is precluded from transacting the business of banking and from accepting deposits from the public or allowing withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must stop banking operations entirely and cannot accept fresh deposits or honour withdrawal requests in the normal course. Customers and counterparties are directly affected because the institution is barred from carrying on banking business.
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