The Reserve Bank of India has, on August 27, 2014, cancelled the licence of The Merchant’s Co-operative Bank Ltd., Dist. Dhule, Maharashtra to carry on banking business under Section 22 of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) read with Section 56 of Banking Regulation Act, 1949. As such, the bank is forthwith 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.

Ajit Prasad

Assistant General Manager

Bank licence cancellation precludes a cooperative bank from transacting 'banking' and accepting deposits under banking regulation law. The central banking regulator cancelled the licence of The Merchant's Co-operative Bank Ltd., Dhule, under the Banking Regulation Act, thereby immediately precluding the institution from transacting banking as defined in the Act, including acceptance and repayment of deposits and other activities falling within the statutory definition of banking.