Cancellation of licence to carry on banking business in India and, conversion of Urban Co-operative Bank into a Co-operative Society- (Reserve Bank of India) (10 Aug 2016)
MANU/RPRL/0195/2016
Banking
Reserve Bank of India has cancelled the licence of Shri Yugprabhav Sahakari Bank Ltd., Vadodara (Gujarat) vide order dated June 29, 2016. In view of the unsatisfactory financials and compliance record, the bank was advised to go out of purview of the B R Act, 1949 (AACS) and convert into a Co-operative Society. The bank has fulfilled all the conditions stipulated in Section 36(A)(2) of the Act ibid to allow for its conversion into Shree Yugprabhav Cooperative Society Ltd. Accordingly, bank has ceased to be a "Co-operative bank" as defined in Section 5 (cci) of Banking Regulation Act, 1949 read with Section 56 of Act and all provisions of the said Act applicable to the said co-operative bank shall cease to apply to it. The bank has been prohibited from carrying on banking business in India under Section 22 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies). As such, the bank is precluded from transacting the business of "Banking" as defined in Section 5(b) of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) including acceptance / repayment of deposits.
Tags : LICENCE CANCELLATION BANKING BUSINESS
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