RBI Cancelled the License of Independence Co-operative Bank Ltd.

Current Context: The Reserve Bank of India has canceled the license of Independence Co-operative Bank Ltd.

• The Independence Co-operative Bank Ltd. is based in Nashik, Maharashtra.
• The reason behind the cancellation of the license is that the bank was not having adequate capital and earning prospects.
• It was not abiding by the norms of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949.
• Therefore, the bank was asked to stop its operation from 3rd Feb 2022.
• The depositors will receive Rs 5 lakhs from Deposit Insurance and Credit Guarantee Corporation (DICGC), after the bank’s liquidation.
• More than 99% of the depositors will receive the full amount of their deposits from DICGC.