Reportedly, the administration is exercising its executive powers under the guise of 'larger public interest.' Regardless of the specific legal circumstances, critics argue that this action contradicts principles of 'Ease of Doing Business' and exacerbates the hardships faced by the general public.

Under the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) is the sole regulatory authority. A state government or local administration does not have the unilateral authority to "close" any bank's operations. Banking in India is a central subject, governed by federal laws.

At a time when austerity measures announced by Prime Minister Narendra Modi has made people apprehensive for a troubled time ahead, shutting down four bank branches in one city comes as a bolt from the blue.