Reserve Bank of India has cancelled the licence of Shri Yugprabhav Sahakari Bank Ltd., Vadodara (Gujarat) in view of the unsatisfactory financials and compliance record, reads a RBI press release.
The bank was advised to go out of purview of the B R Act, 1949 (AACS) and convert into a Co-operative Society. The bank has fulfilled all the conditions stipulated in Section 36(A)(2) of the Act ibid to allow for its conversion into Shree Yugprabhav Cooperative Society Ltd.
Accordingly, the bank has ceased to be a “Co-operative bank” as defined in Section 5 (cci) of the Banking Regulation Act, 1949 read with Section 56 of the Act and all the provisions of the said Act applicable to the said co-operative bank shall cease to apply to it, reads the release further.
The UCB 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, the release says.