Skip to Main Content

The State Transport Employees Co-operative Bank Ltd., Ahmedabad (Gujarat)

Co-operative bankAhmedabad, Gujarat

The RBI action, regulatory basis, and operating impact linked to this entity.

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

S5

Published by RBI

8 Feb 2017

Case Brief

The Reserve Bank of India cancelled the licence of The State Transport Employees Co-operative Bank Ltd., Ahmedabad (Gujarat) by an order dated January 13, 2017. As a result, the entity ceased to be a co-operative bank under the Banking Regulation Act, 1949, and the statutory provisions applicable to it as a co-operative bank stopped applying. The release also states that the bank is prohibited from carrying on banking business in India and cannot transact banking business, including acceptance and repayment of deposits.

Why RBI Acted

Licensing breach

The Reserve Bank of India cancelled the licence of The State Transport Employees Co-operative Bank Ltd., Ahmedabad (Gujarat) by order dated January 13, 2017. Following cancellation, the bank ceased to be a co-operative bank under Section 5(cci) of the Banking Regulation Act, 1949 read with Section 56, and the provisions of the Act applicable to the co-operative bank ceased to apply. The bank was also prohibited from carrying on banking business in India under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies) read with Section 56, and was precluded from transacting banking business including acceptance and repayment of deposits.

Operating Impact

The bank cannot operate as a banking institution or accept/repay deposits going forward. Customers and depositors are affected because the entity is barred from conducting banking business, and the cancellation takes effect from the stated order date.

Regulatory Basis

  • Section 22 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)
  • Section 5 (cci) of the Banking Regulation Act, 1949 read with Section 56 of the Act
  • Section 5(b) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies)

Action Facts

Primary Impact
License cancellation
Order Date
13 Jan 2017
Effective From
13 Jan 2017
Entities Affected
1
Entity Role
Primary
Entity Type
Co-operative bank