Case Brief
The Reserve Bank of India cancelled the banking licence of Vinayak Local Area Bank Ltd., Sikar (Rajasthan) under Section 22(4) of the Banking Regulation Act, 1949. RBI said the bank’s affairs were being conducted in a manner detrimental to depositors’ interests and that the general character of its management was prejudicial to the public interest of present and future depositors. As a result, the bank is precluded from transacting banking business and cannot accept public deposits or allow withdrawals by cheque, draft, order or otherwise.
Action Snapshot
- Primary Impact
- License cancellation
- Entity Type
- Bank
- Location
- Sikar, Rajasthan
- Order Date