Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
5 Feb 2004
Case Brief
The Reserve Bank of India cancelled the licence of The Vijaya Cooperative Urban Bank Ltd. (For Women), Hyderabad, Andhra Pradesh, under Section 22 of the Banking Regulation Act, 1949 (as applicable to Co-operative Societies). The cancellation precludes the bank from transacting banking business, including accepting deposits from the public and allowing withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of The Vijaya Cooperative Urban Bank Ltd. (For Women), Hyderabad, Andhra Pradesh to carry on banking business. The order was issued 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 public deposits and allowing withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must stop carrying on banking business and cannot accept fresh deposits or permit withdrawals in the ordinary course. Depositors and counterparties are affected because the institution is no longer authorised to operate as a bank.
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