Reserve Bank of India (RBI) has cancelled the licence of The Mercantile Urban Co-operative Bank Ltd., Meerut, to carry on banking business on March 30. It has asked the UCB to shut down shutters from this date.
In a press communication the apex bank has said” under section 22 of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) read with Section 56 of the Banking Regulation Act, 1949, the Bank licence stands cancelled.
“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”, it adds.
