Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Oct 2003
Case Brief
The Reserve Bank of India cancelled the licence of The Neelagiri Cooperative Urban Bank Ltd., Nalgonda, Andhra Pradesh under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The order bars the bank from transacting banking business and specifically prevents it from accepting deposits from the public or allowing withdrawals by cheque, draft, order, or otherwise.
Why RBI Acted
RBI cancelled the licence of The Neelagiri Cooperative Urban Bank Ltd., Nalgonda, 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 banking business, including accepting deposits from the public and allowing withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must stop carrying on banking business and cannot accept deposits or permit withdrawals. Customers and counterparties are affected because routine banking operations are no longer permitted.
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