Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
31 Oct 2001
Case Brief
The Reserve Bank of India has cancelled the licence of Western Co-operative Bank Ltd., Mumbai, Maharashtra, to carry on banking business in India. This means the co-operative bank is no longer allowed to transact banking business under the Banking Regulation Act, 1949 as applicable to co-operative societies. The order specifically prevents the bank from accepting deposits from the public and from allowing withdrawals by cheque, draft, order or otherwise.
Why RBI Acted
The Reserve Bank of India cancelled the licence of Western Co-operative Bank Ltd., Mumbai, Maharashtra, under the Banking Regulation Act, 1949 as applicable to co-operative societies. As a result, the bank is precluded from carrying on banking business and is not permitted to accept deposits from the public or allow withdrawals by cheque, draft, order or otherwise.
Operating Impact
The bank must cease banking operations immediately and cannot accept new deposits or process withdrawals in the ordinary course. Depositors and other customers are directly affected because the bank is barred from conducting banking business.
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