Rahuta Union Co-Op. Bank Ltd. & Anr vs Union Of India And Others

The Supreme Court addressed the legality of a scheme framed by the Reserve Bank of India under the Banking Regulation Act, specifically Section 22, which mandates that no company shall carry on banking business in India without a license from the RBI. The Court held that the RBI has the authority to impose conditions on the issuance of such licenses to ensure the protection of depositors and the public interest. The judgment reaffirmed the necessity of compliance with the statutory requirements for banking operations in India.