Tumkur Pattana Sahakara Bank Niyamitha, Tumkur, Karnataka

RBI issued an order dated January 02, 2020 allowing Tumkur Pattana Sahakara Bank Niyamitha, Tumkur, Karnataka to convert into ‘Tumkur Pattana Credit Co-operative Society Ltd.’ As a result, RBI cancelled the licence dated February 01, 2000 granted to the bank under Section 22 of the Banking Regulation Act, 1949 (AACS), effective from the close of business on January 20, 2020. The release states that the bank must stop conducting banking business, including acceptance of deposits from non-members, with immediate effect, and must repay unpaid/unclaimed deposits of non-members whenever demanded, even after conversion into a society.

The institution can no longer operate as a bank and must stop all banking business immediately, including taking deposits from non-members. It must also continue honoring demands for unpaid or unclaimed non-member deposits after conversion into a society, affecting customers and depositors.