Solapur based Ajrun Urban Cooperative Bank’s licence was cancelled by the apex bank RBI on Thursday.
RBI’s press release reads “It is hereby notified for the information of the public that the Reserve Bank of India has cancelled vide order dated May 21, 2013, the licence of Arjun Urban Co-Operative Bank Ltd. Dist. Solapur, Maharashtra.
Arjun Urban Cooperative Bank is further asked to stop to carrying 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.
RBI release further adds that “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.