Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
24 Oct 2002
Case Brief
The Reserve Bank of India has cancelled the licence of The Mother Theresa Hyderabad Co-operative Urban Bank Ltd., Narayanaguda, Andhra Pradesh, to carry on banking business. The cancellation means the co-operative urban bank can no longer conduct banking as defined under the Banking Regulation Act, 1949, including taking public deposits or permitting withdrawals by instrument or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of The Mother Theresa Hyderabad Co-operative Urban Bank Ltd., Narayanaguda, Andhra Pradesh to carry on banking business. As a result, the bank is precluded from transacting the business of banking under 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 banking operations immediately, including accepting deposits and allowing withdrawals. Depositors and counterparties are affected because the institution is no longer permitted to function as a bank.
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