The apex bank of the land RBI has cancelled the licence of Kokan Prant Sahakari Bank based in Mumbai and has declared that the bank cannot carry on banking business anymore.
In a communique RBI says “It is hereby notified for the information of the public that the Reserve Bank of India has cancelled vide order UBD.CO.BSD I/LC No. 6/12.22.114/2013-14, dated September 30, 2013, the licence of Kokan Prant Sahakari Bank Ltd,Mumbai, Maharashtra.
The UCB cannot 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 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, forthwith.