The Reserve Bank of India cancelled the license of United Commercial Co-operative Bank Ltd based in Kanpur in Uttar Pradesh.
A RBI release says the UCB from January 20, 2015 onwards cannot carry on banking business. As such, the bank cannot transact 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.
The release further reads,” The licence was cancelled under Section 22 of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) read with Section 56 of Banking Regulation Act, 1949.”
The bank is under directions since June 1, 2013 and only recently in the month of December last year RBI had extended its period of Direction. The Bank was disallowed to grant or renew any loans and advances, make any investment, incur any liability, disburse any payment and such other things that go with RBI’s Directions.
But a Tuesday release by the apex regulator RBI has ordered cancellation of the UCB licence.
