Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
16 Jan 2003
Case Brief
The Reserve Bank of India cancelled the licence of The Star Cooperative Urban Bank Ltd., Dilsukhnagar, Hyderabad (Andhra Pradesh), to carry on banking business under the Banking Regulation Act, 1949 (as applicable to co-operative societies). The cancellation means the bank is precluded from transacting the business of banking and may not accept deposits from the public or allow withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of The Star Cooperative Urban Bank Ltd., Dilsukhnagar, Hyderabad, to carry on banking business 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 cease banking operations because its licence has been cancelled. Depositors are affected because the bank cannot accept fresh deposits or process withdrawals in the ordinary course of banking business.
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