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The Reserve Bank of India (RBI) has cancelled the banking licence of Ahmedabad-based The Municipal Cooperative Bank Limited thereby restricting the bank from carrying out the banking business in India.
The apex bank, in its order dated January 31, 2014 had cancelled the banking licence of the bank, located at Municipal office compound in Ahmedabad.
“It is notified that the Reserve Bank of India has cancelled vide order dated January 31, 2014 the licence of The Municipal Cooperative Bank Limited, Mumbai Office Copound, Danapeeth Sardar Vallabhbhai Patel road, Ahmedabad-380001 to carry on banking business under Section 22 of the Banking Regulation Act, 1949,” RBI stated in a public notice issued on Tuesday.
“As such the bank is precluded from transacting the business of ‘banking’ as defined in Section 5 (b) of the banking regulation act, 1949 including acceptance / repayment of deposits, forthwith,” said the notice signed by the General Manager of the Urban Banks Department, RBI – Ahmedabad.
When contacted, the GM refused to divulge further details about the bank and stated that the banking regulator holds the powers to issue and cancel the banking licence.
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