Independence Co-operative Bank has ceased to carry on banking business with effect from the close of business hours on February 3, 2022 (Thursday), as the licence of Independence Co-operative Bank, Nashik has been cancelled as it does not have adequate capital and earning prospects, the RBI said.
On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a ceiling of Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
The RBI said the bank has failed to comply with the requirements the Banking Regulation Act, 1949.
Continuance of the bank is prejudicial to the interests of its depositors, and with its present financial position it would be unable to pay its depositors in full. RBI, said that the bank’s present financial position is such that it will not be able to pay its depositors in the full and public interest would be adversely affected if the bank is allowed to carry on with its business any further.