Question
What are the various ground on the basis of which RBI
may cancel a licence granted to a banking company?Solution
Section 22. Licensing of banking companies: (4) The Reserve Bank may cancel a licence granted to a banking company under this section-- (i) if the company ceases to carry on banking business in India; or (ii) if the company at any time fails to comply with any of the conditions imposed upon it under sub-section (1); or (iii) if at any time, any of the conditions referred to in sub-section (3) and sub-section (3A) is not fulfilled.
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