Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
26 Jul 2003
Case Brief
The Reserve Bank of India cancelled the licence of The Manikanta Cooperative Urban Bank Ltd., Hyderabad, Andhra Pradesh, under Section 22 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies). The bank is therefore precluded from transacting the business of banking and is not allowed to 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 The Manikanta Cooperative Urban Bank Ltd., Hyderabad, Andhra Pradesh, under Section 22 of 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 cease banking operations because its licence has been cancelled. Depositors and customers are affected because the bank cannot accept new deposits or process withdrawals in the ordinary course.
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