RAHUTA UNION CO-OP.BANK LTD. vs UNION OF INDIA .

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 conduct banking business in India without a license from the RBI. The Court held that the RBI has the authority to impose conditions for licensing and must ensure that the company can meet its obligations to depositors and that its management is not detrimental to public interest. The petitions challenging the RBI's scheme were dismissed, affirming the RBI's regulatory powers.