Banking & FinanceFinanceInFocus

Licence of Independence Co-operative Bank Ltd is Cancelled by RBI

"Consequent to the cancellation of its licence, Independence Co-operative Bank Limited, Nashik, Maharashtra, is prohibited from conducting the business of 'banking' which includes acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect," the RBI said in a statement.

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The Reserve Bank of India (RBI) said it has cancelled the licence of Nashik-based cooperative lender Independence Co-operative Bank Limited and requested Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra, to issue an order for winding up the bank and appoint a liquidator.

“Consequent to the cancellation of its licence, Independence Co-operative Bank Limited, Nashik, Maharashtra, is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect,” the RBI said in a statement.

On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5,00,000 from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of the DICGC Act, 1961.

As per the data submitted by the bank, more than 99 per cent of the depositors are entitled to receive the full amount of their deposits from DICGC.

As on January 27, 2022, DICGC has disbursed Rs 2.36 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act,1961 based on the willingness received from the concerned depositors of the bank, the RBI said.

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