RBI has in an order dated January 02, 2020 has allowed conversion of Tumkur Pattana Sahakara Bank Niyamitha, Tumkur, Karnataka into ‘Tumkur Pattana Credit Co-operative Society Ltd.’
Accordingly, RBI has cancelled the licence dated February 01, 2000 granted to Tumkur Pattana Sahakara Bank Niyamitha, Tumkur, Karnataka to carry on banking business in India under Section 22 of the Banking Regulation Act,1949 (AACS) with effect from the close of business on January 20, 2020.
This makes it obligatory on the part of the bank to stop conducting the business of ‘banking’ within the meaning of section 5(b) of the Act ibid, including acceptance of deposits from non-members with immediate effect.
Further, the bank should ensure to repay unpaid/unclaimed deposits of non-members held by it, whenever demanded, even after converting into a society, says RBI release.