Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Aug 2002
Case Brief
The Reserve Bank of India cancelled the licence of The Maa Sharda Mahila Nagari Sahakari Bank Ltd., Akola, Maharashtra, to carry on banking business. Under the Banking Regulation Act, 1949 (as applicable to co-operative societies), the bank is now precluded from transacting banking business, including accepting public deposits and permitting withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of The Maa Sharda Mahila Nagari Sahakari Bank Ltd., Akola, Maharashtra, 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 cannot accept deposits from the public or allow withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must stop carrying on banking business. Depositors can no longer place new deposits or withdraw funds through ordinary banking instruments, and the institution cannot operate as a bank going forward.
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