Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
22 Jan 2004
Case Brief
The Reserve Bank of India has cancelled the banking licence of The Kalyan Cooperative Urban Bank Ltd., Hyderabad, Andhra Pradesh under Section 22 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies). This bars the bank from carrying on banking business and from accepting deposits or allowing withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of The Kalyan Cooperative Urban Bank Ltd., Hyderabad, Andhra Pradesh to carry on banking business. The cancellation was issued 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, including accepting public deposits and allowing withdrawals.
Operating Impact
The bank must stop carrying on banking business. Depositors can no longer place fresh deposits or withdraw funds through normal banking instruments, and the institution is effectively barred from operating as a bank going forward.
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