RBI asks Mercantile UCB, Meerut to shut down

People walk in front of the Reserve Bank of India (RBI) building in Kolkata May 21, 2012. The rupee fell below the key psychological level of 55 to hit a new record low on Monday, setting up the prospect of further falls unless the central bank takes measures or intervenes more aggressively, traders said. REUTERS/Rupak De Chowdhuri (INDIA - Tags: BUSINESS) - RTR32EK3

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.

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