Reserve Bank Cancels the Licence of Tumkur Pattana Sahakara Bank Niyamitha, Tumkur and allows the conversion into ‘Tumkur Pattana Credit Co-operative Society Ltd.’Tumkur, Karnataka

Case Brief

RBI, by order dated January 02, 2020, allowed Tumkur Pattana Sahakara Bank Niyamitha, Tumkur, Karnataka to convert into ‘Tumkur Pattana Credit Co-operative Society Ltd.’ In connection with that conversion, RBI cancelled the licence granted on February 01, 2000 under Section 22 of the Banking Regulation Act, 1949 (AACS), with effect from the close of business on January 20, 2020. The release directs the bank to cease conducting banking business within the meaning of Section 5(b) of the Act, including acceptance of deposits from non-members, with immediate effect, and to repay any unpaid/unclaimed deposits of non-members whenever demanded, even after conversion into a society.