Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
21 Dec 2001
Case Brief
The Reserve Bank of India cancelled the licence of The Urban Co-operative Bank Ltd., Allahabad, Uttar Pradesh to carry on banking business in India. The cancellation means the bank is precluded from transacting 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 of The Urban Co-operative Bank Ltd., Allahabad, Uttar Pradesh to carry on banking business in India. 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 can no longer legally conduct banking business, accept fresh deposits, or allow customer withdrawals. Depositors and counterparties are affected because the institution is barred from normal 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