Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
14 Feb 2001
Case Brief
The Reserve Bank of India cancelled the licence granted to The Mira Bhayandar Co-operative Bank Ltd., Bhayandar (Maharashtra), for carrying on banking business in India. The cancellation means the co-operative bank is no longer permitted to transact banking business under the Banking Regulation Act, 1949 (as applicable to co-operative societies), 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 granted to The Mira Bhayandar Co-operative Bank Ltd., Bhayandar (Maharashtra), to carry on banking business in India. As a result, the bank is precluded from transacting the business of banking as defined in the Banking Regulation Act, 1949 (as applicable to co-operative societies), including accepting deposits from the public and allowing withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must stop all banking business activities covered by its licence. Depositors and other customers can no longer use the bank for deposits or withdrawals, and counterparties should treat it as no longer authorised to conduct banking operations.
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