Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Sept 2003
Case Brief
On September 8, 2003, the Reserve Bank of India cancelled the licence of Vasundara Cooperative Urban Bank Ltd., Hyderabad, Andhra Pradesh under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies). The cancellation prevents the bank from transacting banking business, including accepting public deposits and allowing withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of Vasundara Cooperative Urban Bank Ltd., Hyderabad, Andhra Pradesh on September 8, 2003. As a result, the bank is precluded from transacting banking business and is not permitted to accept deposits from the public or allow withdrawals by cheque, draft, order or otherwise. The cancellation was issued under Section 22 of the Banking Regulation Act, 1949 (as applicable to co-operative societies).
Operating Impact
The bank must stop carrying on banking business and cannot accept deposits or permit withdrawals. Depositors and counterparties are directly affected because the institution is no longer licensed 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
- Order Date
- 8 Sept 2003
- Effective From
- 8 Sept 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank